 "Sumitomo Mitsui Financial Group infuses Rs 3,000 cr into Indian subsidiary")
Japanese conglomerate Sumitomo Mitsui Financial Group, Inc. (SMFG) announced on Thursday that it has infused Rs 3,000 crore into its India-based non-banking finance arm, SMFG India Credit (formerly Fullerton India Credit), through a rights issue.
The Rs 3,000 crore equity infusion includes Rs 300 crore allocated to its wholly owned subsidiary, SMFG India Home Finance.
Earlier, in April, SMFG had infused Rs 1,300 crore into SMFG India Credit via a rights issue. With the latest investment, SMFG’s total capital infusion into SMFG India Credit has reached Rs 4,300 crore in FY25 so far.
“This strategic investment reflects SMFG’s unwavering focus on supporting SMFG India Credit’s growth trajectory and enhancing financial inclusion across the nation,” the company said in a statement. It added that following this infusion, SMFG India Credit’s capital adequacy ratio (CAR) is expected to strengthen further, reinforcing the company’s solid financial foundation.
SMFG India Credit provides financing services primarily for small and medium enterprises (SMEs) to meet working capital and growth requirements. Other offerings include loans for commercial vehicles and two-wheelers, home improvement loans, loans against property and shares, personal loans, rural livelihood advancement loans, and financing for various rural micro-enterprises.
As of September 30, SMFG India Credit’s assets under management (AUM) stood at Rs 49,800 crore, reflecting a 25 per cent year-on-year (Y-o-Y) growth.
“This fund infusion demonstrates the confidence that SMFG places in the growth potential of the Indian market and SMFG India Credit’s vision. 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.