The NBFC’s capital adequacy ratio is likely to jump to 31 percent after completion of the transaction from around 20 percent now
“Many Japanese financial institutions are increasingly showing their interest in the Indian financial markets. I am not in a position to talk about the strategy of our peer companies. But overall we have a high rating. India and Japan have very strong trust and mutual respect… this is very important for us to increase our involvement in the Indian economy,” he said.
“The discussion with Shriram Finance early on was about their mission and purpose and our mission and vision. Once we click on such a lofty purpose, the rest is relatively easier. We have great respect for Shriram Finance’s commitment to serving the transportation industry, be it small, micro-small or small operators,” he added.
Business statistics
With a check of nearly ₹40,000 crore, Shriram Finance now expects faster growth of 20 per cent in the next four to five years, compared to the 15 per cent growth earlier, Executive Vice Chairman Umesh Revankar told reporters. The NBFC’s capital adequacy ratio is likely to jump from around 20 percent to 31 percent after the completion of the transaction, while return on equity will decline to 13.5 percent and rise again to 15.5 percent by FY31 as return on assets improves.
Moreover, according to Parag Sharma, the NBFC is likely to get a rating upgrade upon completion of the MUFG transaction. Currently, Shriram Finance is rated AA+ and an upgrade of the rating to AAA or AAA+ could reduce the cost of the funds by 50-75 basis points. However, it will take a significant amount of time for borrowing costs to moderate, he said.
Finally, Revankar said Shriram Finance will open between 100 and 150 branches annually over the next two years, hiring 3,000 to 5,000 employees. Revankar reiterated that Shriram Finance has no plans to change its brand name.
Published on December 22, 2025
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