"Sumitomo Mitsui Financial Group Invests ₹1,300 Crore in SMFG India Credit to Boost Growth"

Japan's Sumitomo Mitsui Financial Group, Inc. (SMFG) announced on Tuesday that it has invested ₹1,300 crore in its wholly-owned subsidiary, SMFG India Credit Co. Ltd. (SMICC), formerly known as Fullerton India Credit Co. Ltd., through a rights issue to drive growth and expansion.

In a statement, SMICC disclosed that it has also invested ₹150 crore in its wholly-owned subsidiary, SMFG India Home Finance Co. Ltd. (SMFG Grihashakti), formerly known as Fullerton India Home Finance Co. Ltd. This investment aims to support SMFG Grihashakti's mission of providing affordable housing finance solutions to underserved populations in India.

Pankaj Malik, Chief Financial Officer at SMICC, commented on the significance of the funding, saying, "This strategic move underscores our commitment to fortify our expansion efforts. SMICC has invested ₹150 crore in SMFG Grihashakti to augment its endeavor to bring affordable housing finance solutions to the underserved population in the country. With this infusion, we are poised to amplify our market presence, drive sustained growth, and deliver value to our customers."

SMICC, which operates 990 branches across India, reported that its Assets Under Management (AUM) as of December 31, 2023, reached ₹42,487 crore, reflecting a year-on-year growth of 24 percent. The company's disbursements for the period April 2023 to December 2023 amounted to ₹28,790 crore, marking a year-on-year increase of 46 percent.

This latest round of funding from SMFG is expected to boost SMICC's capacity to expand its services across India, supporting both its credit and housing finance operations. With these investments, SMICC is well-positioned to meet growing demands in the Indian financial sector and contribute to broader financial inclusion goals.

HBL