India’s largest lender, State Bank of India (SBI), has entered into a strategic partnership with Japan’s MUFG Bank to collaborate on financing mergers and acquisitions (M&A), aviation, and real estate projects for Indian as well as global clients.
The two banks announced the agreement in a joint statement on Wednesday, highlighting their plan to work together in structuring and financing large-scale transactions while expanding cross-border financial cooperation between India and Japan.
Boost Following RBI’s New M&A Financing Rules
The partnership comes shortly after the Reserve Bank of India (RBI) issued its final guidelines on February 13 allowing banks to finance mergers and acquisitions, marking a significant regulatory shift in India’s banking sector.
Under the new framework, banks can finance up to 75 percent of the total value of an acquisition, provided their total exposure to such deals does not exceed 20 percent of their core capital. The move is expected to increase deal financing by domestic lenders and create new opportunities for large corporate transactions.
Strengthening India–Japan Financial Cooperation
According to SBI Deputy Managing Director Kishore Kumar Poludasu, the collaboration will play a key role in enhancing investment flows and industrial cooperation between the two countries.
“By synergizing SBI’s unparalleled domestic reach as the national banking champion along with MUFG’s prominent international footprint, the partnership will serve as a vital bridge for investment flows and industrial collaboration between two of the largest global economies,” Poludasu said.
Focus on Multiple Financial Services
Through the partnership, SBI and MUFG will explore opportunities in structuring and financing deals in sectors such as M&A, aviation, and real estate. The banks will also collaborate on services including M&A advisory, trade finance, and retail banking solutions.
The alliance aims to support Japanese companies expanding operations in India as well as Indian firms seeking growth opportunities in overseas markets, including Japan.
Opportunities for MSMEs and Mid-Corporates
Another key aspect of the partnership is the focus on strengthening connections between businesses in both countries. The two lenders will facilitate introductions between Indian mid-corporates and micro, small and medium enterprises (MSMEs) and Japanese corporate clients.
By identifying financing opportunities and enabling closer business collaboration, the initiative is expected to deepen transaction-level partnerships between companies in India and Japan.
The SBI–MUFG collaboration reflects the growing importance of cross-border banking alliances in supporting global investment, infrastructure development, and corporate expansion in one of the world’s fastest-growing major economies
