Rs 13 billion investment by SMFG fuels Indian NBFC expansion
ECONOMY & POLICY

Rs 13 billion investment by SMFG fuels Indian NBFC expansion

In line with the expansion plan of NBFC's operations, the Japanese financial services company Sumitomo Mitsui Financial Group (SMFG) has invested Rs 13 billion through rights issues in its Indian arm, SMFG India Credit Company Ltd (previously Fullerton India Credit Ltd). This is SMFG's first new equity investment into the Indian division following its 100% acquisition of Fullerton. Pankaj Malik, the chief financial officer of SMFG India Credit Company (SMICC), stated that the strategic move reflects the company's dedication to strengthening its expansion endeavours. He mentioned that according to the corporate presentation, the capital adequacy ratio was 17.3 percent by the conclusion of December 2023. Additionally, it was noted that in 2023, SMFG had invested Rs 6 billion in perpetual debt, which constitutes a portion of Tier-I capital. The remainder of the 25.1% equity investment in SMFG India Credit was acquired by SMFG from Fullerton Financial Holdings in March 2024. The transaction will make SMICC an entirely-owned subsidiary of SMFG. The deal for SMFG to buy 74.9 percent of SMICC from Fullerton Financial Holdings (FFH) was finalised in December 2021. As of December 31, 2023, the SMICC's assets under management (AUM) increased by 24% over the previous year. The payment from April to December 2023 increased by 46%. SMICC said that the company's expansion to 990 branches nationwide is evidence that the business plan has been effective. In the meantime, SMICC has made an Rs 1.5 billion investment in SMFG India Home Finance, a fully owned subsidiary. It is anticipated that this investment will strengthen efforts to offer citizens financing options for affordable homes.

In line with the expansion plan of NBFC's operations, the Japanese financial services company Sumitomo Mitsui Financial Group (SMFG) has invested Rs 13 billion through rights issues in its Indian arm, SMFG India Credit Company Ltd (previously Fullerton India Credit Ltd). This is SMFG's first new equity investment into the Indian division following its 100% acquisition of Fullerton. Pankaj Malik, the chief financial officer of SMFG India Credit Company (SMICC), stated that the strategic move reflects the company's dedication to strengthening its expansion endeavours. He mentioned that according to the corporate presentation, the capital adequacy ratio was 17.3 percent by the conclusion of December 2023. Additionally, it was noted that in 2023, SMFG had invested Rs 6 billion in perpetual debt, which constitutes a portion of Tier-I capital. The remainder of the 25.1% equity investment in SMFG India Credit was acquired by SMFG from Fullerton Financial Holdings in March 2024. The transaction will make SMICC an entirely-owned subsidiary of SMFG. The deal for SMFG to buy 74.9 percent of SMICC from Fullerton Financial Holdings (FFH) was finalised in December 2021. As of December 31, 2023, the SMICC's assets under management (AUM) increased by 24% over the previous year. The payment from April to December 2023 increased by 46%. SMICC said that the company's expansion to 990 branches nationwide is evidence that the business plan has been effective. In the meantime, SMICC has made an Rs 1.5 billion investment in SMFG India Home Finance, a fully owned subsidiary. It is anticipated that this investment will strengthen efforts to offer citizens financing options for affordable homes.

Next Story
Infrastructure Urban

Choice Consultancy Wins Rs 634.7 Million Public Sector Projects

Choice Consultancy Services Pvt Ltd, the public sector advisory arm of Choice International Ltd, has secured two major project developments totalling approximately Rs 634.7 million (inclusive of GST), further solidifying its role in public sector transformation and infrastructure planning across India.The company has received a work order worth Rs 528 million from the Maharashtra Institution for Transformation (MITRA), under the Government of Maharashtra. This assignment, part of the World Bank-backed MahaSTRIDE Programme, involves setting up District Strategic Units (DSUs) across the Chhatrap..

Next Story
Infrastructure Urban

Shalibhadra Finance FY25 Profit Jumps 34% Year-on-Year

Shalibhadra Finance Limited, a leading two-wheeler financing company with a deep presence in Gujarat, Maharashtra, and Madhya Pradesh, has reported a 34 per cent year-on-year rise in net profit for FY25, reaching Rs 160 million. The company’s performance was supported by disciplined lending, cost efficiency, and robust asset quality.Financial Highlights – FY25:Net Profit: Rose 34 per cent year-on-year to Rs 160 million. Q4 FY25 profit also increased by 34 per cent to Rs 44 million.Net Interest Income (NII): Up 13 per cent YoY to Rs 295.8 million for the full year and 16 per cent to Rs 84.3..

Next Story
Infrastructure Transport

Court Orders Uttarakhand PWD to Pay Rs 172 Million to MBL

The Commercial Court in Dehradun, Uttarakhand, has directed the Public Works Department (PWD), Government of Uttarakhand, to pay Rs 172.4 million to MBL Infrastructure Ltd. in accordance with an arbitration award dated 23 March 2024. The case pertains to a completed road project under Package No. 5 for the improvement and strengthening of state roads in Nainital and Udham Singh Nagar districts.The arbitration tribunal had issued a unanimous award in favour of MBL Infrastructure Ltd., granting a payment of Rs 172.4 million, which includes interest accrued up to the date of the award. Additional..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?