The Daily Brief Indian banks court some suitors from Japan
Dec 23, 2025
Japanese banks are increasingly investing in Indian lenders, driven by recent corporate reforms in Japan and a focus on shareholder value. This shift highlights a strategic move as firms like MUFG and Mizuho seek growth abroad despite potential risks. In another significant development, India’s new Shanti Bill changes its nuclear policy, breaking the state monopoly established since 1962. This bill opens certain nuclear sectors to private ownership while maintaining safety regulations, aiming to boost nuclear energy goals dramatically by 2047.
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Japan's Cash Shift Fuels Overseas Push
- Japan's corporate reforms are freeing huge pools of capital through sell-offs and buybacks.
- That cash is pushing Japanese mega banks to hunt growth abroad, notably in India and the US.
TSE Forces Firms To Value Shareholders
- Tokyo Stock Exchange pressured firms trading below book value to improve returns or be publicly shamed.
- Regulators made cost of equity a real constraint, forcing corporate Japan to stop hoarding cash.
Mega Banks Seek Growth Outside Japan
- Japanese mega banks are sitting on record capital from profits and asset sales.
- They now aim to deploy that capital abroad, with India a core target for loan growth and retail finance.