Japanese Megabanks Focus On India In Hunt For Higher Returns

Summary

• Major Japanese lenders will likely make further investments in India's financial sector after expanding aggressively in Southeast Asia and the US, seeking high-return investment opportunities beyond their mature home market.
• India's economy, forecast to grow 6.2% in 2025 and 6.3% in 2026 as per the International Monetary Fund, has attracted investments from the Japanese megabanks into its nonbanking industry in recent years as the commercial banking sector remains strictly regulated.
• Investment in India's financial sector, especially private sector banks, is not easy due to strict foreign ownership rules.

Oleksii Liskonih

Major Japanese lenders will likely make further investments in India's financial sector after expanding aggressively in Southeast Asia and the US, seeking high-return investment opportunities beyond their mature home market.

Sumitomo Mitsui Financial Group Inc.'s (SMFG