Sumitomo Mitsui To Infuse Rs 3,000 Crore Into Indian Subsidiary SMFG India Credit
Sumitomo Mitsui Financial Group will infuse Rs 3,000 crore into its Indian subsidiary, SMFG India Credit Co. Ltd. (formerly Fullerton India Credit Co. Ltd.) through a rights issue.
The investment also includes Rs 300 crore allocated to its wholly-owned subsidiary, SMFG India Home Finance Co. Ltd. (formerly Fullerton India Home Finance Co. Ltd.), also known as SMFG Grihashakti.
As of Sept. 30, 2024, SMFG India Credit's assets under management stood at Rs 49,800 crore, reflecting a year-on-year growth of 25.1%. Earlier, in April 2024, SMFG had infused Rs 1,300 crore into SMFG India Credit through a rights issue.
With the latest capital infusion, the total fund infusion for fiscal 2024 amounts to Rs 4,300 crore, marking the highest ever annual capital support since the company's inception, according to the press release.
This investment is part of SMFG's focus on supporting SMFG India Credit's growth trajectory and advancing financial inclusion across the country, the release said. The fresh capital is expected to further strengthen SMFG India Credit's capital adequacy ratio, reinforcing its financial stability.
"The enhanced capital base not only allows us to scale our business operations but also solidifies our ability to serve a diverse customer base with innovative financial solutions. As we continue to expand, our focus remains steadfast on driving financial inclusion and empowering underserved communities across the country,” said Pankaj Malik, chief financial officer at SMFG India Credit.
SMFG India Credit, registered as a non-banking financial company-investment and credit company with the Reserve Bank of India, began its operations in 2007. It serves over 670 towns and 70,000 villages through 828 branches and employs more than 22,000 people. The company offers lending products including SME financing, vehicle loans, home improvement loans, and loans for rural livelihood advancement.
Meanwhile, SMFG Grihashakti, launched in 2015, specialises in housing finance for salaried and self-employed individuals, along with funding for mid-tier developers. Operating across 179 locations with nearly 3,000 employees, it has served over 51,000 customers to date.
SMFG, headquartered in Japan, is a global banking and financial services groups, offering commercial banking, leasing, securities, and consumer finance. It is listed on the Tokyo and New York stock exchanges and is recognised as a global systemically important bank.
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