Japan’s Sumitomo Mitsui Financial Group (SMFG) has invested an additional Rs 3,000 crore, or over $350 million, into SMFG India Credit through a rights issue. This investment, which also includes Rs 300 crore directed towards its wholly-owned subsidiary--SMFG India Home Finance, follows an infusion of Rs 1,300 crore in April this year.
This is the highest fund infusion for SMFG India Credit in any single year, according to a press release.
“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,” said Pankaj Malik, chief financial officer, SMFG India Credit.
Established in 2007, SMFG India Credit, or the erstwhile Fullerton India Credit, is wholly-owned by Japanese diversified financial group SMFG. Sumitomo Mitsui Banking Corporation, one of the core units of SMFG, is among Japan’s largest banks.
SMFG had bought 74.9% stake in then Fullerton India Credit Company Ltd from Fullerton Financial Holdings Pte Ltd in 2021. It had paid $2 billion for a 74.9% stake and was to eventually buy the residual 25.1% stake over a period of time from Angelica Investments.
The non-bank lender’s primary services include loans to small and medium-sized enterprises for working capital and growth, loans for commercial vehicles and two-wheelers, home improvement loans, loans against property, loans against shares, personal loans, loans for rural livelihood advancement, as well as the financing of various rural micro enterprises.
The company’s assets under management rose 25.1% year-on-year to Rs 49,800 crore as on September 30. The company management expects the consolidated loan book to surpass Rs 60,000 crore by March 31.