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MUFG Bank To Invest Rs 39,600 Crore In Shriram Finance Via Preferential Issue

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MUFG Bank To Invest Rs 39,600 Crore In Shriram Finance Via Preferential Issue


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MUFG Bank is India’s second-largest retail NBFC by AUM and says the capital infusion would significantly strengthen its balance sheet and support its next phase of growth.

Shriram Finance says the partnership will combine its extensive domestic franchise and distribution network with MUFG’s global banking expertise and financial strength.

MUFG Bank will invest Rs 39,618 crore (about $4.4 billion) in Shriram Finance through a preferential issuance of equity shares, marking the largest foreign direct investment in an Indian financial services company.

Shriram Finance said its board has approved entering into definitive agreements with MUFG Bank for the transaction, which will result in the Japanese lender acquiring a 20 per cent stake in the NBFC on a fully diluted basis. The proposed investment is subject to shareholder approval, regulatory clearances and other customary closing conditions.

The deal is being seen as a major endorsement of India’s lending sector and Shriram Finance’s scale and business model. The company is India’s second-largest retail NBFC by assets under management and said the capital infusion would significantly strengthen its balance sheet and support its next phase of growth.

Shriram Finance said the partnership will combine its extensive domestic franchise and distribution network with MUFG’s global banking expertise and financial strength. The investment is expected to improve access to low-cost funding, potentially support credit ratings and bring global best practices in governance, technology and operations. The collaboration is also expected to unlock synergies in innovation and customer engagement, supporting sustainable long-term growth.

MUFG Bank’s parent, Mitsubishi UFJ Financial Group, has been present in India for over 130 years and has invested about $1.7 billion in the country so far, creating employment for nearly 5,000 people. The investment in Shriram Finance will be MUFG’s largest exposure in India to date, underlining its commitment to the country’s financial inclusion and growth story.

Umesh Revankar, executive vice-chairman of Shriram Finance, described the transaction as a milestone for the company. “This transaction marks a defining moment in our growth journey. MUFG is one of the largest financial institution, with an extensive international network and strong values rooted in substantial growth and financial inclusion. The entry of MUFG as a key investor reinforces global confidence in India’s financial services sector and our role as a leader within it,” he said. “Together, we aim to strengthen our capabilities, drive economic progress, and create meaningful impact across communities, building a future-ready institution anchored in trust and good governance.”

Hironori Kamezawa, group chief executive officer of Mitsubishi UFJ Financial Group, said MUFG views the investment as a strategic partnership. “MUFG is proud to enter into this transaction and become a strategic partner of Shriram Finance, one of India’s most respected financial institutions. MUFG and Shriram Finance share a common vision and aligned values for the future,” he said. “Leveraging our global capabilities, MUFG is committed to supporting Shriram Finance’s growth and contributing to economic development, communities, and society in India.”

Shriram Finance is the flagship company of the Shriram Group, with businesses spanning credit, insurance, asset management, wealth management, asset reconstruction, stock broking and distribution. Established in 1979, the NBFC focuses on financing small road transport operators and small business owners, and is a market leader in organised financing of pre-owned commercial vehicles and two-wheelers. The company has assets under management of over Rs 2.81 lakh crore, operates through more than 3,200 branches, employs nearly 79,000 people and serves close to 9.7 million customers.

Shares of Shriram Finance on Monday jumped 3.68% to Rs 934.85 apiece on the NSE, compared with the previous close of Rs 901.7. The stock has surged nearly 10% in the past one week.

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Are we getting more savvy about our credit scores?

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Are we getting more savvy about our credit scores?



With lenders using credit scores to decide everything from phone contracts to car finance, experts say understanding how it works could make a meaningful difference.



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IMF Raises India’s 2025 Growth To 7.3%

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IMF Raises India’s 2025 Growth To 7.3%


Washington: The International Monetary Fund on Monday raised India’s economic growth projection for 2025 by a sharp 0.7 percentage point to 7.3 per cent, citing stronger-than-expected performance in the second half of the year, even as it expects growth to moderate in the coming years. 

In its World Economic Outlook Update, the IMF said the upward revision reflects a “better-than-expected outturn in the third quarter of the year and strong momentum in the fourth quarter,” underscoring India’s position as one of the fastest-growing major economies in the world.

The IMF projected that India’s growth would ease to 6.4 per cent in 2026 and 2027 as cyclical and temporary factors wane.

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Despite the expected moderation, India remains a key driver of growth among emerging market and developing economies, which the IMF said are projected to expand at just over 4 per cent in 2026 and 2027. 

Emerging and developing Asia continues to benefit from strong technology-related investment and trade, even as global momentum becomes uneven.

The update noted that global growth is projected to hold steady at 3.3 per cent in 2026, supported by easing trade tensions, accommodative financial conditions and a surge in investment linked to technology, particularly artificial intelligence.

Inflation trends were also favourable for India. The IMF said inflation in India “is expected to go back to near target levels after a marked decline in 2025, driven by subdued food prices,” offering additional support to domestic demand.

However, the IMF cautioned that risks to the outlook remain tilted to the downside. A reassessment of expectations around AI-driven productivity gains could lead to a pullback in investment and tighter global financial conditions, with spillover effects for emerging economies.

On the upside, the Fund said faster adoption of artificial intelligence could lift global growth, provided productivity gains materialise, and financial risks are contained.



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Why the US is buying icebreakers from Finland

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Why the US is buying icebreakers from Finland


Adrienne MurrayBusiness reporter, Helsinki

Aker Arctic Technology A Polaris class icebreaker designed by Finnish firm Aker Arctic Technology cuts its way through ice covered waterAker Arctic Technology

Finland leads the world when it comes to the design and construction of icebreakers

As President Donald Trump continues to insist that the US needs to own Greenland, his wider focus on the Arctic region has seen Washington order new icebreakers.

For these ships, which can sail through seas covered in solid ice, the US has gone to the world expert – Finland.

Temperatures are sub-zero inside Aker Arctic Technology’s ice laboratory, as the scale model of an icebreaker cruises down a 70m-long simulation tank.

It ploughs a neat channel through the frozen surface of the water.

Undergoing testing at a facility in Helsinki, Finland’s capital, this is a design for the next generation of the country’s icebreakers.

“It’s crucial that it has sufficient structural strength and engine power,” says ice performance engineer, Riikka Matala.

Mika Hovilainen, the firm’s chief executive, adds that the shape of the vessel is also crucial. “You have to have a hull form that breaks ice by bending it downwards,” he says. “It’s not cutting, it’s not slicing.”

Finland is the undisputed world leader when it comes to icebreakers. Finnish companies have designed 80% of all those currently in operation, and 60% were built at shipyards in Finland.

The country leads the way out of necessity, explains Maunu Visuri, president and chief executive of Finnish state-owned company Arctia, which operates a fleet of eight icebreakers.

“Finland is the only country in the world where all the harbours may freeze during wintertime,” he says, adding that 97% of all goods to the country are imported by sea.

During the coldest months, icebreakers keep Finland’s ports open, and work as pathfinders for big cargo ships. “It’s really a necessity for Finland. We say that Finland is an island.”

It was this expertise that saw Trump announce in October that the US planned to order four icebreakers from Finland for the US Coast Guard.

A further seven of the vessels, which the US is calling “Arctic Security Cutters”, are to be built in the US, using Finnish designs and expertise.

“We’re buying the finest icebreakers in the world, and Finland is known for making them,” said Trump.

Adrienne Murray A model icebreaker being tested at Aker Arctic Technology's facility in HelsinkiAdrienne Murray

Aker Arctic Technology is continuing to test designs for the next generation of icebreakers

Under US law, the country’s naval and coastguard ships must be domestically-built, but in this case the president waived that requirement on national security grounds. He cited “aggressive military posturing, and economic encroachment by foreign adversaries”, by which he means Russia and China.

This US concern comes as climate change continues to make the Arctic Ocean more navigable for cargo ships, at least if icebreakers lead the way by cutting a path. This opens up commercial trade routes from Asia to Europe, either above Russia, or north of Alaska and Canada’s mainland, and down past Greenland.

Reduced ice levels also mean that oil and gas fields beneath the Arctic are more accessible.

“There’s simply a lot more traffic in that part of the world now,” notes Peter Rybski, a retired US Navy officer and Helsinki-based, Arctic expert.

“You have an active oil and gas exploration and extraction industry in Russia, as well as a newly-emerging trans-shipment route from Europe to Asia.”

Rauma Marine Constructions An artist's impression of the new Finnish icebreakers that the US has orderedRauma Marine Constructions

The US intends to buy 11 icebreakers of Finnish design, pictured, four of which will be built in Finland

Following Trump’s outline announcement last autumn, the first contracts were awarded on 29 December.

Finland’s Rauma Marine Constructions is to build two icebreakers for the US Coast Guard at its shipyard in the Finnish port of Rauma. The first ship is due to be delivered in 2028.

A further four will be constructed in Louisiana, with all six using an Aker Arctic Technology diesel-electric powered design.

The US orders are part of an effort to catch up with the number of Russian icebreakers. Currently Russia has around 40, including eight that are nuclear powered.

By contrast, the US presently only has three in operation.

Meanwhile China operates around five polar-capable vessels. “None of them are technically icebreakers,” says Rybski, pointing to their design not meeting the strict criteria. “But they are increasing their fleet.”

He adds that China has increasingly been sending these “research” ships into Arctic waters between Alaska and the far east of Russia, including areas that the US considers its “exclusive economic zone”.

“With limited means to respond this becomes a problem [for the US].”

Trump’s desire to enlarge its icebreaker fleet goes beyond the practicalities of operating in ice-clad Arctic seas, assesses Lin Mortensgaard, a researcher at the Danish Institute of International Studies. She says it is also about projecting power.

“No matter how many aircraft carriers you have and how much you use them to threaten states with, you cannot sail your aircraft carrier into the central Arctic Ocean,” she says.

“Icebreakers are really the only kind of naval vessel to signal that you are an Arctic state, with Arctic capabilities. And I think this is what much of the US discourse is about.”

James Brooks Icebreaker engineer Riikka Matala wearing a fluorescent jacketJames Brooks

Icebreaker engineer Riikka Matala says that icebreakers need both structural strength and powerful engines

Back in Finland, Helsinki Shipyard occupies a dock on the capital’s waterfront. It is where half of the world’s icebreakers have been made. Today owned by Canadian firm Davie, it also hopes to win new contracts from the US Coast Guard.

“The geopolitical situation has changed definitely,” says the shipyard’s managing director, Kim Salmi.

“We have our eastern neighbour here [Russia]. They are building their own [new] fleet. And the Chinese are building their fleet.”

He adds: “The US, Canada and the western allies in general, are looking for the power balance.”

Inside a cavernous shipbuilding hangar, workers cut and weld steel for the yard’s latest icebreaker, a heavy-duty Arctic vessel, called Polarmax that’s destined for the Canadian coastguard.

The Finns can build these complex vessels remarkably swiftly – it takes between two-and-a-half and three years – thanks to a streamlined production method, and decades of experience.

“Over 100 years, we have practised this,” says Arctia’s Visuri. “You’ve got this cycle of designers, operators, builders. That’s why Finland is the superpower of icebreakers.”

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