SBI Partners with MUFG Bank to Finance M&A, Aviation, and Real Estate Deals, Strengthening India-Japan Financial Ties

Mumbai, March 12, 2026: State Bank of India has entered into a strategic partnership with MUFG Bank to collaborate on financing mergers and acquisitions, aviation, and real estate projects to support Indian and global clients, the lenders said in a joint statement on Wednesday .

Regulatory Context

The agreement comes after the Reserve Bank of India issued the final guidelines for banks to finance mergers and acquisitions on February 13, executing a significant regulatory shift that's expected to boost deal funding by domestic lenders. Under the new rules, banks can fund up to 75% of a total value of a deal, but must ensure their total lending for such acquisitions does not exceed 20% of their core capital .

Strategic Significance

This deal is important as it deepens India-Japan financial ties and supports cross-border corporate activity. "By synergizing SBI's unparalleled domestic reach as the national banking champion along with MUFG's prominent international footprint, the partnership will serve as a vital bridge for investment flows and industrial collaboration between two of the largest global economies," said Kishore Kumar Poludasu, Deputy Managing Director at SBI .

Scope of Collaboration

Through their partnership, SBI and MUFG will explore opportunities in structuring and financing transactions in sectors such as M&A, aviation, and real estate while also cooperating on M&A advisory, trade finance, and retail banking solutions. The collaboration will also support Japanese companies expanding operations in India and Indian firms looking to grow in overseas markets, including Japan .

"Both banks will also help facilitate the introduction of Indian mid-corporates and micro, small and medium enterprises to Japanese corporate clients, identifying financing opportunities that deepen transaction-level collaboration," the statement read .

SBI's Financing Capacity

On February 20, SBI Chairman CS Setty had told reporters on the sidelines of an IBA event in Mumbai that SBI was in talks with Japanese lenders for a partnership in the acquisition finance business, and that SBI had the ability to disburse up to 94,000 crore to borrowers looking at acquisition financing .

MUFG's Perspective

"We are witnessing strong momentum from Japanese companies expanding their presence in India, alongside increasing global ambition from Indian enterprises," said Takuya Senoo, Regional Executive for India & Sri Lanka at MUFG. Through the partnership with SBI, MUFG aims to provide integrated cross-border solutions that support both inbound investment into India and outbound expansion by Indian corporates .

Synergy of Strengths

The tie-up combines SBI's large domestic banking network with MUFG's global reach and expertise in cross-border financial structuring, allowing both institutions to facilitate capital flows between the two countries .