CCI clears MUFG’s ₹39,618 crore Shriram Finance deal, largest FDI in financial sector

CCI clears MUFG’s ₹39,618 crore Shriram Finance deal, largest FDI in financial sector


This could allow the company to compete more aggressively with banks such as HDFC Bank and ICICI Bank across MSME loans, gold finance, personal loans, and affordable housing
| Photo Credit:
ADNAN ABIDI

The Competition Commission of India (CCI) on Wednesday approved Mitsubishi UFJ Financial Group (MUFG) Bank’s ₹39,618 crore investment in Shriram Finance Ltd, clearing the final regulatory hurdle for what is set to be the largest foreign direct investment in India’s NBFC sector. The deal offers MUFG access to a massive rural network and secures capital to strengthen Shriram Finance’s balance sheet, creating a landmark valuation for NBFCs.

MUFG’s ₹39,618 crore ($4.4 billion) investment in Shriram Finance, acquiring a 20 per cent stake, is India’s largest financial sector FDI due to its immense scale and strategic focus on India’s retail/MSME lending market, surpassing the previous record of ₹26,853 crore for RBL Bank valuing the deal to be 47 per cent higher

The deal is expected to close by this April. Shriram Finance said in a regulatory filing that it had been informed of the approval on March 25.

“We have been informed by the investor that the Proposed Transaction has been approved by the Competition Commission of India (CCI) on March 25, 2026,” the company said in a regulatory filing to the exchanges.

The deal involves the preferential allotment of 47.11 crore shares at ₹840.93 apiece, giving Japan’s largest lender a 20 per cent stake in the country’s second-largest retail NBFC on a fully diluted basis.

The transaction, which has already received RBI and shareholder approvals, is expected to close in early April, subject to customary conditions.

The ₹39,618 crore infusion is expected to push Shriram Finance’s Tier-1 capital adequacy ratio from about 20 per cent to over 35 per cent, strengthening its balance sheet and lowering its cost of funds.

This could allow the company to compete more aggressively with banks such as HDFC Bank and ICICI Bank across MSME loans, gold finance, personal loans, and affordable housing. The stronger capital base also provides headroom to scale these businesses faster while accelerating its transition from an asset-backed “truck financier” to a data-led, cash-flow-based NBFC.

The partnership also positions it early in EV financing, especially in 3Ws and small commercial vehicles, combining local distribution with MUFG’s green finance expertise.

For competitors such as Mahindra Finance and Cholamandalam, the equation shifts — Shriram now brings a structural edge in pricing, capital and growth. This isn’t just a capital raise; it’s a re-rating trigger that could reshape the NBFC pecking order. While its peers remain reliant on domestic funding, giving Shriram a potential advantage in pricing and growth through access to global capital.

“For Shriram Finance, the MUFG investment marks more than a capital infusion—it signals a transition toward a diversified, institutionally backed NBFC,” said an analyst at a leading broking. house

With all key regulatory approvals in place, analysts expect further re-rating triggers, including potential credit upgrades and improved returns as funding costs decline.

Published on March 25, 2026



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Is early NDA consolidation putting INDIA Bloc on the back foot in Puducherry?

Is early NDA consolidation putting INDIA Bloc on the back foot in Puducherry?


N Rangasamy, who has remained a central political figure in Puducherry politics, is expected to anchor the NDA campaign with emphasis on administrative continuity, development and stronger alignment with the Centre
| Photo Credit:
ANI

With less than three weeks to go for the polls on April 9, the race for Puducherry is just taking shape after weeks of infighting in the INDIA Bloc even as the National Democratic Alliance (NDA) managed to stitch together the unit faster. With the clock ticking towards the nomination filing deadline, it took a high-level meeting between P Chidambaram and MK Stalin to salvage a fragile pact for the INDIA bloc.

The Congress-DMK alliance entered the race on a shaky footing after prolonged wrangling over seat-sharing delayed preparations until the final days before nominations closed. After more than a week of tense negotiations, the Congress and the DMK eventually finalised a formula, under which the Congress will contest 16 seats and DMK 14 in the 30-member Assembly. This brought memories of the infighting between the INDIA Bloc partners in Bihar polls, where friendly fights between allies cost the alliance a number of seats and also mirrored the simultaneous seat-sharing conflict that has been on in Tamil Nadu for the 2026 polls.

VCK exit

However, the dialogue between Chidambaram and Stalin finally gave way to a broad arrangement, under which the DMK is contesting 14 seats, leaving 16 to the Congress. DMK is also allotting one seat each to the Communist Party of India and Viduthalai Chiruthaigal Katchi (VCK). However, unhappy with just one seat and without clarity on which that would be, VCK President Thol Thirumavalavan has announced that the party will contest independently from three constituencies – Oussudu, Nettapakkam and Oulgaret.

While both parties laid claim to several key constituencies in this process, the leaders of the alliance assured in a press conference that the partnership was solid and that differences would be ironed out by internal dialogue. However, with Thursday being the last day of withdrawing the nominations, the final picture of the contestants in each constituency is set to become clearer, and the UT can now go on to campaign mode.

NDA consolidates

In contrast, the ruling NDA moved relatively faster to formalise its electoral understanding. The alliance, led by Chief Minister N Rangasamy of the All India NR Congress (AINRC), finalised its pact with the Bharatiya Janata Party, while allocating two seats each to the All India Anna Dravida Munnetra Kazhagam (AIADMK) and the Latchiya Jananayaga Katchi (LJK). The agreement helped stabilise the alliance after initial disagreements, and allowed the NDA to move quickly into campaign mode.

Rangasamy, who has remained a central political figure in Puducherry politics, is expected to anchor the NDA campaign with emphasis on administrative continuity, development and stronger alignment with the Centre, themes the ruling alliance hopes will resonate with voters. Adding a fresh variable to the contest is the entry of actor-turned-politician Vijay’s Tamilaga Vettri Kazhagam (TVK), which has chosen to contest all 30 seats independently. While analysts believe the party is unlikely to emerge as a dominant force in its debut, its presence is expected to influence outcomes in tight contests by splitting votes, particularly among younger voters and urban constituencies.

This multi-cornered configuration, with both major alliances facing internal adjustments, has set the stage for a competitive and unpredictable electoral cycle.

Key issues

Local concerns remain central to voter sentiment across the Union Territory. Issues such as infrastructure disparities, electricity tariffs, tourism-related pressures and concerns over law and order are emerging as recurring themes in campaign discourse. At the same time, industrial growth and the long-standing demand for statehood continue to feature prominently in the political messaging.

Analysts suggest the contest may hinge less on broad ideological narratives and more on alliance discipline, candidate selection and constituency-level dynamics. In tightly contested seats, marginal vote shifts triggered by smaller parties or local grievances could determine the outcome.

Political analyst Ramu Manivannan noted that the BJP-AINRC combine holds a “thin edge” in the fight supported by voter expectations around central assistance and Statehood. He added that Vijay’s entry introduces unpredictability, but may not convert into significant electoral gains.

At the ground level, residents point to limited anti-incumbency against Rangasamy, though internal dissatisfaction within party ranks persists. Infrastructure has emerged as a central issue. Voters like small-scale industrialist Raghavn in Villanoor highlighted stark disparities in development within Puducherry, particularly between the well-maintained White Town area and other parts of the city, underscoring demands for more equitable urban planning.

Data from the Association for Democratic Reforms show that voter turnout in the 2021 Assembly election stood at 83.31per cent, down from 85.08 per cent in 2016. Winning candidates in 2021 secured an average of 50.77 per cent of votes polled, compared to 47.12 per cent in 2016. With several constituencies expected to witness tight contests and some ministers facing strong challenges, the April 9 election is likely to hinge on local dynamics, alliance cohesion and marginal vote shifts.

For now, the defining feature of the campaign remains the contrast in momentum, an NDA that consolidated early versus an INDIA bloc that took longer to settle internal disputes, setting up a race where timing, cohesion and ground mobilisation could prove decisive

Published on March 25, 2026



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As global fertilizer prices head north, India looks to include price while signing deals

As global fertilizer prices head north, India looks to include price while signing deals


As the India gears up to meet fertiliser demand for the ensuing monsoon season crops, companies are considering incorporating “floor and ceiling” price in annual fertilizer contract with suppliers of di-ammonium phosphate (DAP), muriate of potash (MOP) and complex fertilizers. This will ensure that volatility like current one is avoided to a large extent.

“Volatility in fertilizer prices have become too frequent and there has to be some mechanism to at least partially insulate any shock like the current one. There is no futures trading of fertilizers anywhere as suppliers are limited and buyers cannot hedge the risk in this supplier-dominated market,” said a CEO of a leading Indian company dealing with urea, DAP, potash as well as complex fertilizers.

Though the outcome will depend on how the negotiation proceeds, still price factor can be brought into the contract, he said, adding that most companies are not in a hurry to renew their annual import contract with suppliers even as the current financial year is about to end. “At current global prices, no negotiation can take place on what should be either the ‘floor’ price or ‘ceiling’ price, he pointed out.

No new urea tender

Floor price is the minimum guaranteed rate which supplier will get when prices dip and ceiling price is the maximum Indian buyer will pay for that product in case of spurt in prices, he said.

Meanwhile, even as the government is betting on supplies from Russia, which may take about 45 days to reach Indian ports, there is no fresh tender for urea ever since last one issued by RCF on February 18, before the war began on February 28. The government has constituted a panel of experts representing top officials of public sector firms NFL, IPL, RCF and HURL to advise it on the time and volume of urea that can be imported.

“The government agreed to buy about 1 million tonnes of urea from last RCF tender at $508 (west coast delivery) and $512 (east coast delivery) for supply to be completed by March 31, though there will be delay now. But it would be difficult to source urea even at $750/tonne now, as global prices have zoomed,” said a senior executive of a company who participated in the bid.

Similarly, global DAP rate have exceeded $800/tonne and MOP $370-400/tonne, much higher than their pre-war rates of $650 and $290, respectively.

Urea output doubts

On the other hand, the government is committed to try to meet kharif demand of fertilizers saying the country has higher stock compared to previous year. However, doubts remain about domestic production of urea due to tight supply of natural gas.

“Through a combination of domestic production hikes and a sophisticated global procurement strategy, the government has moved to insulate Indian farmers from global supply chain volatilities,” the Department of Fertilizers said last week.

As of March 19, urea stock was 61.14 lakh tonnes (lt) against 55.22 lt, DAP 24.24 lt against 11.85 lt, complex 57.21 lt against 34.44 lt and SSP 24.80 lt against 23.15 lt. Stock of only MOP is lower at 12.65 lt from 14.13 lt, it had said.

In the last Kharif season, the requirement of urea was estimated at 185.4 lt whereas the sales rose by 4 per cent to 193.2 lt. The fertilizer demand for Kharif 2026 is yet to be estimated.

Since there are no signs of the war ending and when the Strait of Hormuz will open, fertilizer companies doubt if domestic production of urea this kharif would match last year’s level of 144.8 lt (April-September) even if 70 per cent of committed gas supply is achieved.

“If there is 30-40 per cent lower production that amounts to an availability of 150-160 lt (excluding fresh import in the season) of urea after factoring 60 lt of opening stock,” said an expert cautioning a demand gap of 30-40 lt.

Published on March 25, 2026



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Rupee closes at new record low

Rupee closes at new record low


The rupee ended at 93.9775 per dollar, against the previous close of 93.87, down about 11 paise.
| Photo Credit:
REUTERSANUSHREE FADNAVIS

The rupee closed at a record low against the US dollar on Wednesday in the backdrop of rising crude oil prices due to the ongoing geopolitical tensions in West Asia and continuous outflows from equity markets on account of FP-related sales, even as the RBI’s intervention ensured that it did not breach the 94 mark.

The rupee ended at 93.9775 per dollar, against the previous close of 93.87, down about 11 paise.

Radhika Rao, Senior Economist & Executive Director, DBS Bank, said therupee’s weakness reflects a cyclical adjustment in response to evolving global conditions, primarily a shift in underlying external sector dynamics.

Amit Pabari, MD, CR Forex Advisors, observed that the geopolitical situation in West Asia is far from resolved.

He said Iran’s denial on any active negotiations with the US is keeping uncertainty alive.

“The effect of global tensions is now reflecting in domestic data as well. HSBC India Composite PMI dropped sharply to 56.5 in March from 58.9, coming below expectations. This marks the slowest pace of expansion since October 2022, with both manufacturing and services seeing moderation.

“The global conflict is not just affecting markets, but is also slowing down business activity in India. And that adds another layer of pressure on the rupee,” Pabari said.

Published on March 25, 2026



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RBI rejects all bids at Treasury Bills auction aggregating ₹35,000 cr

RBI rejects all bids at Treasury Bills auction aggregating ₹35,000 cr


The last time the RBI rejected all the bids at the T-Bill auction was in February 2025
| Photo Credit:
ALTAF HUSSAIN

The Reserve Bank of India (RBI) rejected all bids it received at the auction of Treasury Bills aggregating ₹35,000 crore on Wednesday in the backdrop of the Government receiving inflows by way of GST and advance tax collections and market players placing bids at relatively higher yields.

Market experts said the last time the RBI rejected all the bids at the T-Bill auction was in February 2025.

The RBI, on behalf of the Government, conducted auction of 91-day T-Bill (for raising ₹15,000 crore), 182-day T-Bill (₹12,000 crore) and 364-day T-Bill (₹8,000 crore).

Good Liquidity

Under the competitive bidding, the central bank received 79 bids aggregating ₹21,698 crore at the auction of the 91-day T-Bill; 104 bids aggregating ₹28,776 crore at the auction of the 182-day T-Bill; and 90 bids aggregating ₹15,675 crore at the auction of the 364-day T-Bill.

The RBI rejected all the bids as the Government has sufficient liquidity following mid-month tax collections and bidders, especially banks, demanding higher yields in view of lower surplus in the banking system.

V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank, observed that the bids at the T-Bill auctions may have been rejected as the government is having good liquidity on account of tax collections and the market players placing bids at higher yields due to lower liquidity surplus.

There was a liquidity surplus of about ₹2.5-3.0 lakh crore in the banking system in the beginning of March 2026 and the same has come down to about ₹61,600 crore as on March 24,.

ends

Published on March 25, 2026



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West Asia conflict clouds Dalal Street outlook, brokerages trim targets and turn cautious

West Asia conflict clouds Dalal Street outlook, brokerages trim targets and turn cautious


Heightened volatility and mounting headwinds have prompted global and domestic brokerages to take a more cautious stance on Indian equities, as the escalating West Asia conflict fuels crude oil volatility, inflation risks and clouds the outlook for growth and corporate earnings.

While most firms believe the domestic structural story remains intact, near-term market direction is seen hinging on the duration of geopolitical tensions, trajectory of oil prices and foreign capital flows, prompting several brokerages to pare index targets and reassess risk-reward.

‘GFC-like risks’

Bernstein said the ongoing geopolitical shock could expose India’s macro vulnerabilities if elevated crude prices persist, drawing parallels with stress periods seen during past global crises. It warned that a prolonged conflict could recreate conditions similar to the aftermath of the global financial crisis, when India’s growth slowed sharply, inflation surged and the rupee depreciated steeply.

Early warning signs are already visible, with the rupee weakening about 11 per cent over the past 18 months and elevated crude prices threatening to push inflation beyond the Central bank’s tolerance band for the first time since late 2024. A delay in rate cuts, weaker remittances from Gulf nations and continued foreign investor outflows could strain the balance of payments and shave 3-4 per cent off GDP growth, a level that would effectively resemble a recession for an emerging economy like India.

Factoring in these risks, the brokerage cut its year-end Nifty 50 target to 26,000, implying limited upside from current levels, and maintained a neutral stance on equities.

Both the Nifty 50 and the BSE Sensex have declined 10.5 per cent each since February 27, reflecting sustained selling pressure amid escalating geopolitical tensions and volatile global risk sentiment.

UBS downgrade

UBS also downgraded Indian equities to neutral from attractive, citing rising macro vulnerability to energy supply disruptions and persistent price pressures. The brokerage said India’s heavy dependence on imported oil, LNG and LPG leaves the economy exposed to geopolitical chokepoints, particularly the Strait of Hormuz, where any disruption could sharply strain external balances and corporate earnings.

Citi, Nomura trim Nifty targets

Adding to the cautious sentiment, Citi recently cut its year-end target for the Nifty 50 to 27,000 from 28,500, flagging rising risks to economic growth and corporate earnings as surging oil prices and supply disruptions cloud the outlook. In a similar move, Nomura slashed its December 2026 Nifty target by 15 per cent, bringing it down to 24,900 from 29,300.

BNP Paribas had warned that key macro indicators such as the balance of payments, fiscal position, inflation and corporate earnings remain vulnerable to prolonged geopolitical stress.

In contrast, domestic brokerage Emkay Global staged a bullish perspective, maintaining its December 2026 Nifty target of 29,000 as it anticipates a sharp “peace dividend” bounce following any de-escalatory news.

Emkay remains bullish

Emkay Global expects India to be a major beneficiary of easing oil prices due to its heavy reliance on imported crude and projects Brent Crude to retreat to $75-80 per barrel.

The brokerage added that domestic markets are poised for a smart recovery after recent foreign investor selling dragged the Nifty 50 lower, with easing crude prices and more reasonable valuations likely to attract flows back into equities. It expects the rupee and bond markets to strengthen alongside equities as investors quickly price in the peace dividend, even though real economic normalisation could take a few months.

Emkay Global cautioned that some supply-chain disruptions and energy infrastructure damage may weigh on near-term earnings, estimating a modest impact on FY27 profits, with small- and mid-cap firms facing slightly higher but temporary pressure.

Published on March 25, 2026



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