Mitsubishi looks for bank acquisitions in India
MITSUBISHI UFJ Financial Group’s lending arm is seeking acquisitions of about 100 billion yen ($890 million) in Asia and the US to bolster its global operations, its top executive said.
Bank of Tokyo Mitsubishi UFJ, to be renamed MUFG Bank in April, would consider taking majority stakes in banks in countries such as Indonesia or India in addition to the US, chief executive officer Kanetsugu Mike said in an interview.
While Japan’s biggest bank has previously signaled interest in buying lenders in the countries, it’s the first time a senior executive has indicated how much it might spend. Mike, 60, said any decision would be based on strategic fit, price and profitability, while noting that U.S. targets are “expensive” at the moment.
Japan’s biggest banks are expanding abroad to make up for declining loan profitability and a shrinking population at home. In the US, MUFG owns a bank with a heavy presence in California, and is the largest shareholder in Morgan Stanley. It bought stakes in banks in the Philippines, Thailand and Vietnam in recent years. Overseas business remains “a driver of growth for both the bank and the group,” Mike told a group of reporters in Tokyo.