MUFG Said to Discuss Buying $1.7 Billion Stake in HDFC Unit (2)

Mitsubishi UFJ Financial Group Inc. is in talks to acquire a roughly $1.7 billion stake in HDFC Bank Ltd.’s consumer lending unit to tap booming demand for personal finance loans in India, people familiar with the matter said.

Japan’s biggest lender is nearing the purchase of a 20% stake in HDB Financial Services Ltd., which offers personal, gold and auto loans, said the people, who asked not to be named because the information is private. It would mark one of the biggest financial sector deals involving lenders of the two countries.

Negotiations are in the final stages, terms ...