SMFG Expands Indian Presence with Rs.3,000 Crore Infusion
Sumitomo Mitsui Financial Group (SMFG) has strongly enhanced its Indian operations by injecting Rs.3,000 crore into SMFG India Credit Co. Ltd, previously Fullerton India Credit Co. Ltd, through a rights issue. Of this amount, Rs.300 crore will be set aside for SMFG India Home Finance Co. Ltd, or SMFG Grihashakti. This is one of the reasons why the group is keen to increase its footprint in the Indian financial market.
SMFG India Credit has achieved the highest capital inflow in its annual book since it raised Rs.4,300 crore through this fund infusion in the financial year 2024. The investment is the third this year, following a Rs.1,300 crore infusion in April 2024.
This investment shows confidence in India’s growth potential and helps the company reach more customers across different areas.
Expanding the capital base is expected to make the company focus on driving financial inclusion for underserved communities throughout the country.
Operations Expanding at SMFG India Credit
Operating as a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC) under the Reserve Bank of India, SMFG India Credit has been active in India since 2007. With a network of over 828 branches across more than 670 towns and 70,000 villages, the company has established a robust presence in the country.
SMFG India Credit provides a range of financial products to underserved retail and small business borrowers.
Some of these include:
- SME financing for working capital and business growth
- Loans for commercial vehicles and two-wheelers
- Home improvement loans
- Loans against property and shares
- Personal loans
- Rural microenterprise financing
SMFG Grihashakti: Affordable Housing Strengthening
SMFG Grihashakti is a wholly owned subsidiary of SMFG India Credit. It focuses on housing finance and lends to both salaried and self-employed customers, especially focusing on mid-tier developers in the affordable housing segment.
Established in December 2015, SMFG Grihashakti provides its services across 179 locations in India through approximately 3,000 personnel on the ground. It has supported more than 51,000 customers thus far in meeting housing finance objectives with improved affordability of better homes.
SMFG is one of the world’s largest banking and financial services groups. The group, headquartered in Japan, offers a broad range of services, including commercial banking, leasing, securities, and consumer finance.
SMFG is listed on the Tokyo and New York Stock Exchanges, with a market value of about USD 77.5 billion as of March 2024. As a Global Systemically Important Bank (G-SIB), it has strong credit ratings: A1 from Moody’s and A- from Standard and Poor’s.
The latest investment in its Indian businesses shows SMFG’s long-term commitment to India’s financial sector and its focus on supporting the country’s economic growth and development.
