Japan’s Sumitomo Mitsui Financial Group (SMFG) on Tuesday announced a ₹1,300-crore investment in domestic non-bank lender SMFG India Credit Co (SMICC) through a rights issue.
Pankaj Malik, the chief financial officer of SMICC, said the ₹1,300 crore should be seen as a “strategic move” which underscores its commitment to fortify expansion efforts.
SMICC has invested ₹150 crore in its wholly-owned subsidiary SMFG India Home Finance Co, known as SMFG Grihashakti, a statement said.
SMFGICC, an NBFC — Investment and Credit Company (NBFC-ICC), was acquired by SMFG in 2021 for a deal reported at $2 billion.
The investment in Grihashakti will help it amplify its market presence by taking affordable housing finance solutions to the underserved population in India and drive sustained growth, Malik added.
SMICC’s assets under management (AUM) stood at ₹42,487 crore as of December 31, 2023, while the April-December 2023 disbursements were higher by 46 per cent compared to the year-ago period at ₹28,790 crore.
It has 990 branches in the country at present, according to the statement.
