Mitsubishi UFJ Financial Group will start lending to real estate firms in India and expand its foreign exchange derivatives business in the country’s low-tax hub, as it seeks to deepen its presence in the world’s fastest-growing major economy.
Japan’s biggest bank is setting up a team that will start operations this financial year, Shashank Joshi, MUFG India’s deputy chief executive officer, said in an interview. The push comes as it broadens its India franchise after completing a $4.4 billion stake purchase in Shriram Finance this month, taking its total investment in the country to about $7 billion.
Property financing in India marks MUFG’s strategic expansion into an industry where developers such as Lodha Developers and Adani Group are benefiting from urbanization. Demand for office space has climbed to record levels as companies including JPMorgan Chase & Co., Nvidia and Amazon step up operations in India. Luxury housing is also booming while home sales remain muted.
