Mumbai, April 24 -- Shriram Finance Ltd expects its cost of funds to decline by around 1% over the next 18 months as the non-banking financial company (NBFC) looks to restructure its debt following a capital infusion from Japan's Mitsubishi UFJ Financial Group (MUFG).

First announced in December 2025, MUFG completed the acquisition of 20% stake in the NBFC for Rs.39,618 crore in April 2026. The non-bank plans to use about 50% of the proceeds to restructure its liabilities and the remaining to push lending in existing segments.

The capital infusion also led rating agencies to upgrade the company's debt rating to 'AAA' from 'AA+', which is also expected to help reduce funding costs. In addition, the company's cost of funds will be lower b...