The infusion brings the total capital base of the MUFG branches to 52 billion rupees, excluding surplus capital. Indian regulations limit the amount banks can lend to a single borrower to 20% of their capital funds.

The boost comes as New Delhi promotes India’s manufacturing sector to bolster the country’s industrial competitiveness and as it works to attract companies from abroad.

The number of Japanese companies operating in India has soared roughly fivefold over the past 15 years, and MUFG Bank says its capital base in the country was too small to keep up.

The lender, which has locations in New Delhi and Mumbai, last month became the first Japanese bank to open a branch in a fintech hub and special economic zone in the western state of Gujarat. The Mitsubishi UFJ Financial Group unit also launched a US$300 million fund to invest in Indian startups earlier this year, and recently inked an investment deal estimated at US$10 million.