{"id":"f-73cd9b4b27-7801609b-29bd-5130-b241-bb6d20e0938b","title":"Demographic dividend and markets luring Japanese giants to India with cash chest","description":"The lure of the Indian financial sector is attracting big Japanese investors. The latest in the queue is Shriram Finance, in which MUFG has picked up a substantial stake. Mizuho and Sumitomo Mitsui walked this road earlier.","timestamp":1766151764,"category":"business","headline":"Demographic dividend and markets luring Japanese giants to India with cash chest","modifiedHeadline":"India's Demographics Attract Japanese Firms","subCategories":["scid_47bc7b76"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"68","fcSummary":"Japanese financial institutions are investing heavily in India's financial market due to its aging population and need for growth. Recent deals include MUFG's stake in Shriram Finance, Mizuho Securities' acquisition of Avendus, and Sumitomo Mitsui's stake in Yes Bank.","summary":"India's financial sector lures Japanese giants! MUFG invests in Shriram Finance, following Mizuho & Sumitomo Mitsui's earlier moves.","ctaUrl":"https://trends.glance.com/newz/astrology/IN/en/news9/f-73cd9b4b27-7801609b-29bd-5130-b241-bb6d20e0938b","sourceUrl":"https://www.news9live.com/business/biz-news/demographic-dividend-and-markets-luring-japanese-giants-to-india-with-cash-chest-2913446","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/HZ0DmRwKvT90.webp","content":"

Kolkata: Though a very advanced economy, Japan is plagued by an ageing population. That’s why Japanese big financial institutions are chasing the Indian

\n\n

financial market with piles of cash. The purchase of stake in Shriram Finance by Mitsubishi UFJ Financial Group’s (MUFG) for a whopping Rs 40,000 crore is just the latest in a trend that could grow more pronounced in future.

While the big investment will give MUFG a 20% stake in Shriram Finance, it will gain access to a fast growing credit market in India which is driven by a demographic advantage, rising income, changing lifestyles, growing urbanisation and fast rising consumption, a lot of which is taking place in the premium category, and which in turn means a lot of relatively big ticket loans even at the retail level. The growth and long-term returns that Japanese institutions are seeking is what the Indian market precisely offers.

\n\n\n

Mizuho Securities targets Avendus

MUFG was perhaps following Avendus, which is an institutional financial services firm of India. It was announced this week that Redpoint Investments, which is an investment arm of KKR, will sell its stake in Avendus to Japanese firm Mizuho Securities Company. Significantly, Mizuho Securities Company is a group company of Mizuho Financial Group, which is a banking conglomerate of Japan that has about $1.9-$2 trillion in total assets. It offers a wide variety of financial services from banking to securities.

\n\n

Agencies reported that Mizuho Securities will buy a majority stake in Avendus from US investment firm KKR for up to $523 million. It was also reported that Mizuho Securities will pick up a stake which could be between 61.6% and 78.3% of Avendus.

Sumitomo Mitsui stake in Yes Bank

The first big purchase of a stake in an Indian financial institution by a Japanese bank was Sumitomo Mitsui Banking Corporation’s buying of stake in Yes Bank’s. This banking giant acquired 25% stake in Yes Bank. It was a strategic move which, on the one hand, boosted Yes Bank’s capital, and on the other, leveraged Sumitomo Mitsui Bank’s expertise.

\n","readDurationInMinutes":"3","author":{"name":"News9","logo":"https://glance-mob.glance-cdn.com/public/bubble/png/0e26af53-6a49-4ee1-a63d-25161b714ad5.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"G-EQBYL0ZYL8","type":"GA"},{"measurementId":"33425927","type":"COMSCORE","partnerName":"glance"}],"pointerSummary":["MUFG buys 20% of Shriram Finance for ₹40,000 Cr, accessing India's credit market.","Mizuho Securities acquires majority stake in Avendus from KKR for $523M.","Sumitomo Mitsui bought 25% stake in Yes Bank, bolstering its capital."],"tags":["India","Japan","Investment","FinancialSector","DemographicDividend","ShriramFinance","MUFG","MizuhoSecurities","SumitomoMitsui","YesBank","Avendus","KKR","ForeignInvestment","EconomicGrowth","EmergingMarkets"],"consent":true,"redirectionEnabled":false}

Demographic dividend and markets luring Japanese giants to India with cash chest

SUMMARY