MUFG looking to expand India operations amid economic slowdown in China

By Taiga Uranaka and Hideki Suzuki

Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, is looking to further expand in India after making key investments to tap the south Asia nation’s growth potential. 

“For India, economic growth is not something that will be a challenge,” Hironori Kamezawa, the bank’s chief executive officer, said in an interview. “It’s a sure thing.”

Global lenders and private equity giants are pushing into India, with its economy forecast to grow 7% in the year ending March.

India has become one of the bright spots in capital markets this year, with firms clamoring for bankers, in part as the mood on China has soured.   

Japan’s largest lender has been building up its operations in India in recent years. In August last year, it opened a branch in the Gujarat International Finance Tec-City, the country’s newest financial hub and a flagship project of Prime Minister Narendra Modi.

It also set up a fund to target middle- to late-stage Indian startups. Earlier this year, it acquired a stake in DMI Finance Private Limited, an Indian fintech company.

“We would like to do a bit more,” Kamezawa said, adding that the country also serves as a location for the bank’s back office operations center.

India’s appeal is also rising in comparison with China, where he said his bank will be selective in its operations given various risks. 

“I think as an investment destination, India could attract the money that might want to avoid China,” he said.