SMFG Invests Rs 1,300 Cr in SMFG India Credit Co for Expansion
May 07, 2024 16:49
Sumitomo Mitsui Financial Group (SMFG) invests Rs 1,300 crore in SMFG India Credit Co (SMICC) for expansion. The investment will be used to fortify expansion efforts and invest in SMFG Grihashakti, a wholly-owned subsidiary.
Photograph: Uttam Ghosh/Rediff.com
Mumbai, May 7 (PTI) Japan's Sumitomo Mitsui Financial Group (SMFG) on Tuesday announced a Rs 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 Rs 1,300 crore should be seen as a "strategic move" which underscores its commitment to fortify expansion efforts.
SMICC has invested Rs 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 USD 2 billion.
Its investment in Grihashakti will help it amplify the 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 Rs 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 Rs 28,790 crore.
It has 990 branches in the country at present, as per the statement.
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