State Bank of India (SBI), the country’s largest lender, has partnered with Japan’s banking major MUFG Bank to deepen financial cooperation and facilitate cross-border capital flows between the two economies, amid rising Japanese investment interest in India.

“The agreement aims to enhance mutual collaboration by further leveraging the complementary strengths of both institutions to facilitate cross-border capital flows, create new synergistic financing opportunities and support sustainable economic growth across two of Asia’s largest economies,” SBI said in a release.

Under a strategic partnership agreement, the two institutions will collaborate to structure and finance projects across sectors such as merger & acquisitions, aviation and real estate, while also expanding cooperation in trade finance, advisory services and retail banking solutions for corporates operating in both countries, as per the release.

The alliance combines SBI’s strong domestic franchise and corporate lending presence in India with MUFG’s global network and expertise in cross-border structuring, enabling them to support Japanese companies expanding into India as well as Indian corporates pursuing overseas growth, including entry into Japan and other global markets.

“The partnership builds on a strong and expanding track record of collaboration between MUFG and SBI,” the release noted.

Recently, SBI raised a $500 million gender-themed syndicated loan facility, arranged by MUFG, aimed at promoting women’s economic empowerment - the largest such loan raised by a financial institution globally. Earlier, in 2023, MUFG also served as lead social loan coordinator and arranger for SBI’s $1 billion social loan, the largest by a bank in the Asia-Pacific region.

As per the releae, the collaboration will also see both banks work together to connect Indian mid-corporates and MSMEs with Japanese corporates, identifying financing opportunities and facilitating inbound and outbound investment flows.

Takuya Senoo, regional executive for India and Sri Lanka at MUFG Bank, said the partnership reflects the growing economic corridor between the two countries. “India represents one of the most compelling growth markets globally, and the India–Japan corridor continues to deepen. Through our partnership with SBI, we aim to provide integrated cross-border solutions that support both inbound investment into India and outbound expansion by Indian corporates,” he said.

Kishore Kumar Poludasu, deputy managing director of the international banking group at SBI, said the collaboration strengthens the bank’s ability to support clients operating across both markets. “As trade and investment flows between India and Japan expand, our collaboration with MUFG enhances our ability to provide comprehensive financing and advisory solutions across jurisdictions,” he said.

The partnership aligns with the broader India–Japan “Special Strategic and Global Partnership”, which aims to deepen economic integration and investment flows between the two countries. With Japanese investments increasing across infrastructure, manufacturing and emerging sectors in India, the SBI–MUFG alliance is expected to serve as a financial bridge supporting long-term capital formation and industrial collaboration as India pursues its Viksit Bharat 2047 vision.