Shriram Finance Rejects Bank License Bid After MUFG Deal

• Shriram Finance clarified it has no immediate plans to apply for a banking license, preferring to remain an NBFC.
• This statement follows Uday Kotak's query after MUFG acquired a 20% stake in the NBFC for Rs 39,600 crore.
• Executive Vice Chairman Umesh Revankar emphasized the advantages of remaining an NBFC, citing customization and growth opportunities.
• MUFG confirmed it will remain a "significant minority stakeholder" with no intention to exceed 20% or invest in other Shriram Group entities.
• The Rs 39,600 crore deal marks India's largest FDI in the financial sector, expected to strengthen Shriram Finance's balance sheet and growth.

Why It Matters: Shriram Finance will remain an NBFC, not seeking a bank license, despite MUFG's major investment.