Sumitomo Mitsui Financial Group infuses ₹3,000 cr into SMFG India Credit

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Sumitomo Mitsui Financial Group has infused ₹3,000 crore into SMFG India Credit Company via a rights issue, reinforcing its commitment to the Indian market.

The infusion includes ₹300 crore that would go into its wholly-owned subsidiary SMFG India Home Finance, it said in a statement. 

SMFG India Credit had assets worth ₹49,800 crore under management at the end of September 30, 2024, up 25 per cent on year. In April SMFG had infused ₹1,300 crore, making it the highest ever fund infusion in a single year.

Post this infusion, SMICC’s Capital Adequacy Ratio (CAR) is expected to strengthen further, reinforcing the company’s robust financial foundation.

The investment reflects SMFG’s focus on supporting SMICC’s growth trajectory and enhancing financial inclusion across the nation, SMFG said.

“This fund infusion demonstrates the confidence that SMFG places in the growth potential of the Indian market and SMFG India Credit’s vision, said Pankaj Malik, Chief Financial Officer, SMFG India Credit. He added that theenhanced capital base would not only allow it to scale its business operations but also solidify its 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.”

Tokyo-based SMFG is one of the global systemically important banks and one of the largest global banking and financial service groups. It’s offers a range of financial services including commercial banking, leasing, securities and consumer finance.

In 2021, it acquired a 74.9 per cent stake in SMICC from Fullerton Financial Holdings Pte making SMICC a consolidated subsidiary. Later it acquired the remaining 25.1 per cent stake also for $700 million from Angelica Investments Pte. 

SMICC’s main business is providing SMEs funds 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 and financing of various rural micro enterprises.