SMFG infuses ₹1,075 crore into India NBFC arm to fund growth

Sumitomo Mitsui Financial Group has infused ₹1,075 crore into SMFG India Credit through a rights issue, strengthening the capital base of its Indian non-banking finance arm as it looks to expand lending across retail, MSME and small business segments.

The investment reinforces the Japanese financial group’s long-term bet on India’s credit market, where demand for formal finance continues to rise across underserved and underbanked borrower segments.

Capital to support next phase of growth

SMFG India Credit said the fresh capital will support its next phase of growth, including expansion of its lending book, digital transformation and investments in governance, compliance and risk management.

Ravi Narayanan, MD & CEO, SMFG India Credit, said, “This capital infusion from SMFG reinforces our strategy and execution strength as we enter our next phase of growth.”

He added that the company remains focused on “delivering sustainable, predictable, and non-volatile growth through superior execution and agility,” while strengthening customer experience, governance and risk management practices.

AUM rises 21%, disbursements up 29%

SMFG India Credit’s assets under management stood at ₹64,100 crore as of December 31, 2025, a 21% year-on-year growth.

Disbursements during the April–December 2025 period stood at ₹39,500 crore, registering a 29% year-on-year increase, indicating strong lending momentum.

The company operates as an RBI-registered NBFC-Investment and Credit Company and, along with SMFG India Home Finance, offers loans across SME financing, commercial vehicle and two-wheeler loans, home loans, loans against property and shares, personal loans and rural livelihood loans.

From Fullerton India to SMFG India Credit

SMFG’s India lending bet dates back to its acquisition of control in the former Fullerton India Credit. The Japanese group completed the purchase of a 74.9% stake in Fullerton India Credit from Fullerton Financial Holdings on November 30, 2021, making it a consolidated subsidiary.

The company was renamed SMFG India Credit Company Ltd effective May 11, 2023.

In March 2024, SMFG completed the acquisition of the remaining 25.1% stake, making SMFG India Credit a wholly owned subsidiary.

Focus on underserved borrowers

The company said it has a pan-India presence across more than 670 towns and 70,000 villages, with over 1,000 branches and 22,500 employees, targeting underserved retail and small business borrowers.

The latest infusion comes as SMFG continues to scale its India credit platform. Reuters reported last year that SMBC Group had around $7 billion invested across India and intended to grow its non-bank lending business, SMFG Credit, separately from its investment in Yes Bank.