In a major push to its Indian operations, Sumitomo Mitsui Financial Group (SMFG) has announced a capital infusion of ₹3,000 crore into SMFG India Credit Co. Ltd. The investment, which was made through a rights issue, is part of the group’s efforts to further strengthen its position in the Indian financial market, which has been growing rapidly.
PC: Telegraph India
This is the largest ever annual fund infusion made by SMFG India Credit. This amounts to ₹4,300 crore for the 2024 financial year. In April 2024, it had already raised ₹1,300 crore from the same group, emphasizing that the group was looking to continue investing in expanding its presence in the country. It has thus enhanced its capital adequacy ratio (CAR), strengthening its financial stability and operational capacity.
As of 30 September 2024, AUM for SMFG India Credit stood at ₹49,800 crore with a YoY growth of 25.1%. This aggressive growth curve has reflected in India’s ever-growing requirement for financial services and SMFG’s strategic positioning to meet such requirements. It speaks to the growth potential in India and our own confidence in the company’s future vision,” Pankaj Malik, Chief Financial Officer of SMFG India Credit said. He said the capital infusion would strengthen the capital base, which will enable the company to scale up business operations and serve a broader customer base.
SMFG India Credit is registered as a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC) with the Reserve Bank of India. It has been operating since 2007, with over 828 branches in more than 670 towns and 70,000 villages, providing a good infrastructure to deliver a wide range of lending products. These products are primarily targeted towards the under-served retail and small business borrowers and consist of SME financing, commercial vehicle and two-wheeler loans, home improvement loans, loans against property and shares, personal loans, and rural micro-enterprise financing.
In addition, SMFG Grihashakti is a subsidiary wholly-owned by SMFG India Credit, which specializes in housing finance. Introduced in December 2015, Grihashakti caters to both salaried and self-employed customers as well as mid-tier developers primarily in the affordable housing space. It operates in 179 locations in India and has satisfied more than 51,000 customers thus far, servicing critical housing finance needs.
Headquartered in Japan, SMFG is one of the world’s largest banking and financial services groups. It serves a whole array of activities including but not limited to commercial banking, leasing, securities and consumer finance as of the March 2024 market capitalization of approx. 77.5 billion. USD and categorized as G-SIB strong credit rating from the major ratings agencies.
This infusion of capital marks SMFG’s unyielding commitment to the Indian market while underlining the ever-increasing importance of financial inclusion and access to credit for underserved communities all over the country. With the continued expansion of its services, SMFG India Credit looks forward to creating positive change in the financial landscape of India, empowering people and businesses alike.
This ₹3,000 crore investment by SMFG testifies to the robust growth potential of the Indian financial sector and the group’s strategic focus on enhancing its operational capacity to better serve its customers.
