Sumitomo Mitsui Invest Rs 3000 Crore Into SMFG India Credit

Sumitomo Mitsui Financial Group (SMFG) will invest Rs 3,000 crore in its Indian subsidiary, SMFG India Credit Co. Ltd. (formerly Fullerton India Credit Co. Ltd.), through a rights issue.

The investment includes Rs 300 crore for its subsidiary, SMFG India Home Finance Co. Ltd. (formerly Fullerton India Home Finance Co. Ltd.), also known as SMFG Grihashakti.

As of September 30, 2024, SMFG India Credit's assets under management reached Rs 49,800 crore, growing 25.1% year-on-year. Earlier, in April 2024, SMFG had injected Rs 1,300 crore into the company through a rights issue.

With this latest investment, total infusion for fiscal 2024 amounts to Rs 4,300 crore, the highest annual capital support since the company began. According to the press release this funding aims to boost SMFG India Credit's growth and promote financial inclusion across India while strengthening its capital adequacy ratio for enhanced financial stability.

Pankaj Malik, chief financial officer, SMFG India Credit, said, "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.” 

About SMFG India Credit

SMFG India Credit, a non-banking financial company registered with the Reserve Bank of India, started in 2007. It operates in over 670 towns and 70,000 villages with 828 branches and employs more than 22,000 people. The company offers a range of lending products, including SME financing, vehicle loans, home improvement loans, and loans to support rural livelihoods.

SMFG Grihashakti, founded in 2015, focuses on housing finance for both salaried and self-employed individuals, as well as funding for mid-sized developers. It operates in 179 locations, employs nearly 3,000 people, and has served over 51,000 customers.

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