Japanese financial institutions continue to expand in India, with Mitsubishi UFJ Financial Group planning to invest $4.4 billion in a shadow bank.

Gelonghui December 19th- Mitsubishi UFJ Financial Group will invest 396.2 billion Indian rupees in the Indian shadow bank Shriram Finance Ltd. to acquire a minority stake, becoming the latest Japanese company to expand in the rapidly growing Indian banking market. Both companies stated on Friday that Mitsubishi UFJ will hold a 20% stake in Shriram, headquartered in Mumbai. This will be the largest single foreign investment in the Indian financial services sector to date. As the domestic market shrinks and domestic interest rates remain relatively low, Japan's largest banks are increasing their investments in Indian financial companies, betting on the world's fastest growing major economy. Earlier this year, Sumitomo Mitsui Financial Group became the largest shareholder of Yes Bank Ltd. Just a few days ago, Mizuho Financial Group also agreed to acquire a controlling stake in Avendus Capital Pvt., an investment bank supported by KKR & Co.