 "Japan's Sumitomo Mitsui Financial invests Rs 1,300 cr in SMFG India Credit")
Japan's Sumitomo Mitsui Financial Group (SMFG) said on Tuesday it has invested Rs 1,300 crore in non-bank lender SMFG India Credit Co Ltd (SMICC) through a rights issue to drive growth.
SMICC invested around Rs 150 crore in its wholly-owned subsidiary, SMFG India Home Finance Co. Ltd. (formerly Fullerton India Home Finance Co. Ltd.). SMICC is a non-banking financial investment and credit company (ICC) that was acquired by SMFG in 2021 for a deal reportedly valued at $2 billion.
"The Rs 1,300 crore investment by SMFG marks a pivotal moment for SMICC. This strategic initiative underscores our dedication to bolstering our expansion endeavors," said Pankaj Malik, chief financial officer of SMICC.
SMICC finances small and medium enterprises (SME) for working capital and growth. It also facilitates loans for commercial vehicles and two-wheelers.
"By investing Rs 150 crore in SMFG Grihashakti, SMICC aims to enhance its efforts in providing affordable housing finance solutions to underserved populations in the country. With this infusion, we are well-positioned to enhance our market presence, drive sustainable growth, and deliver value to our customers," said Malik.
As of December 31, 2023, SMICC had assets under management of Rs 42,487 crore, reflecting a year-on-year growth (Y-o-Y) of 24 per cent. Disbursements from April 2023 to December 2023 amounted to Rs 28,790 crore, a Y-o-Y growth of 46 per cent.
The company has 990 branches nationwide, the company said in a statement.