SMFG injects Rs 1,300 cr into SMFG India Credit Co to fuel expansion

SMFG invests Rs 1,300 crore in India's SMICC through a rights issue, demonstrating its commitment to growth in the country. The move strengthens SMICC's expansion efforts and includes an investment in SMFG Grihashakti to enhance affordable housing finance. As of December 2023, SMICC's AUM stood at Rs 42,487 crore, with significant growth in disbursements during the April-December period.

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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)