India, Dec. 20 -- Japan's Mitsubishi UFJ Financial Group Inc (MUFG) will acquire a minority stake of 20 per cent in non-bank lender Shriram Finance Ltd for Rs39,618 crore (around $ 4.4 billion), marking the largest cross-border investment in India's financial sector to date. MUFG will pick up the minority stake through preferential equity shares, Shriram Finance said in a statement. The signing of definitive agreements with MUFG Bank reinforces confidence in India's lending and financial services sector fundamentals and future growth potential, the statement said, adding that it will also strengthen SFL's capital base and accelerate its growth trajectory.

The proposed investment by MUFG Bank is subject to shareholder approval, regulatory...