Sumitomo Mitsui Financial Group’s fourth equity injection into SMICC in two years takes cumulative parent capital support beyond ₹5,375 crore, as the NBFC’s AUM crossed ₹64,100 crore in December 2025, per the company statement and ICRA data.
Sumitomo Mitsui Financial Group (SMFG) infused ₹1,075 crore into its wholly owned Indian subsidiary SMFG India Credit Company Limited (SMICC) through a rights issue on April 24, 2026, according to a company statement. The capital injection strengthens SMICC’s balance sheet ahead of the NBFC’s next growth phase, with management flagging digital transformation and risk management as the primary deployment areas.
Ravi Narayanan, Managing Director and CEO of SMFG India Credit, said the infusion reinforces strategy and execution strength as the company enters its next phase. He added that the company is focused on digital transformation and maintaining governance standards, backed by a branch network that expanded from 810 to 1,008 locations and a workforce that grew from 19,473 to approximately 25,000 employees in FY25 alone, per CareEdge Ratings. ICRA’s stable outlook on SMICC factors in continued parent support and CAR remaining above 15% on a steady-state basis, per management guidance cited in ICRA’s November 2025 report.
What SMICC looks like today
SMICC reported assets under management (AUM) of ₹64,100 crore as of December 31, 2025, a 21% year-on-year increase, per the company’s April 24 statement. Disbursements in the nine months from April to December 2025 totalled ₹39,500 crore, a 29% year-on-year rise. The company operates across more than 670 towns and over 70,000 villages through 1,000-plus branches and 22,500 employees, offering SME financing, vehicle loans, home loans, personal loans, and loans against property, per company disclosures.
On a standalone basis, SMICC recorded total revenue of approximately ₹8,844 crore in FY25, per BlinkX financial data. Net profit fell to ₹344 crore in FY25 from ₹614 crore in FY24, with return on assets (RoA) declining to 0.75% from 1.63%, as elevated credit costs from write-offs in unsecured loans and higher operating expenditure from branch expansion weighed on profitability, per CareEdge Ratings cited in its September 2025 report.
Pattern of capital support: ₹5,375 crore in two years
The April 2026 infusion is not a one-off. SMFG injected ₹4,300 crore into SMICC across two tranches in FY25, ₹1,300 crore in April 2024 and ₹3,000 crore in December 2024, according to Business Standard. The cumulative equity infusion from SMFG since FY25 now stands at approximately ₹5,375 crore, including the latest ₹1,075 crore tranche. These injections have materially strengthened SMICC’s capital adequacy ratio (CAR) to 22.39% and Tier-I CAR to 19.46% as of March 31, 2025, up from 17.33% and 13.46%, respectively, in FY24, per ICRA’s November 2025 rating report. Consolidated managed gearing stood at 5.0 times as of March 31, 2025.
SMICC is strategically important to SMFG as its primary retail lending vehicle in India, which SMFG considers its third-largest exposure market in Asia and Oceania, per CareEdge Global’s August 2025 rating rationale. SMFG’s parent-level assets stand at over $2.1 trillion across 38-plus countries, with India among its key multi-franchise targets in Asia.
Why the capital is needed now
SMICC’s gross Stage 3 assets, loans overdue beyond 90 days, rose to 2.4% as of September 30, 2025, from 1.9% as of March 31, 2025, on a standalone basis, per ICRA. The deterioration reflects stress in the unsecured lending segment, where the company maintains a 100% write-off policy at 120 days past due. Disbursement growth has accelerated sharply since SMFG’s acquisition, the post-acquisition CAGR of 70% in disbursements during FY22–FY25 compares with a pre-acquisition CAGR of negative 3% during FY19–FY22, per CareEdge Global data. Maintaining capital buffers as the book scales is the stated rationale for recurrent equity injections.
What SMICC is and where it came from
SMFG India Credit was formerly Fullerton India Credit Company Limited. SMFG acquired a 74.9% stake in November 2021 and purchased the remaining stake from Angelica Investments Pte. Ltd., a Temasek subsidiary, in March 2024, making SMICC a 100% subsidiary, per ICRA. The company has operated in India since 2006, focusing on mass-market retail and SME borrowers who are underserved by mainstream banks. Its subsidiary, SMFG Grihashakti (SMFG India Home Finance), extends the product range into home loans and home improvement financing.
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FAQs
What is SMFG India Credit, and who owns it?
SMFG India Credit Company Limited (SMICC) is a non-banking financial company (NBFC) registered with the Reserve Bank of India, formerly known as Fullerton India Credit Company Limited. Sumitomo Mitsui Financial Group (SMFG) of Japan acquired a 74.9% stake in November 2021 and purchased the remaining stake from Angelica Investments Pte. Ltd., a Temasek subsidiary, in March 2024, making SMICC a 100% wholly owned subsidiary, per ICRA’s November 2025 rating report. The company has operated in India since 2006 and focuses on mass-market retail and SME borrowers. SMFG’s parent-level assets stand at over $2.1 trillion across 38-plus countries, per CareEdge Global.
How much has SMFG invested in SMFG India Credit in total?
SMFG has infused a cumulative ₹5,375 crore into SMICC across four tranches since FY25. This includes ₹1,300 crore in April 2024; ₹3,000 crore in December 2024, taking the FY25 total to ₹4,300 crore; and the latest ₹1,075 crore rights issue completed on April 24, 2026, per Business Standard and the company’s April 24 statement. Prior to FY25, SMFG also extended US$700 million in external borrowings and ₹600 crore in perpetual debt support, per CareEdge Ratings.
What is SMFG India Credit’s AUM and loan book size?
SMFG India Credit reported assets under management (AUM) of ₹64,100 crore as of December 31, 2025, a 21% year-on-year increase, per the company’s April 24, 2026, statement. Disbursements in the nine months from April to December 2025 totalled ₹39,500 crore, a 29% year-on-year rise. This compares with AUM of ₹56,989 crore as of March 31, 2025, which itself reflected approximately 25% year-on-year growth over the ₹45,441 crore reported in March 2024, per ICRA’s November 2025 report.
Is SMFG India Credit financially healthy? What are its NPA levels?
SMICC’s gross Stage 3 assets, loans overdue beyond 90 days, rose to 2.4% as of September 30, 2025, from 1.9% as of March 31, 2025, on a standalone basis, per ICRA. The rise reflects stress in unsecured lending, where SMICC maintains a 100% write-off policy at 120 days past due. Net profit declined to ₹344 crore in FY25 from ₹614 crore in FY24, with return on assets (RoA) falling to 0.75% from 1.63%, as elevated credit costs and branch expansion costs weighed on earnings, per CareEdge Ratings (September 2025). Capital adequacy ratio (CAR) stood at 22.39% as of March 31, 2025, well above regulatory requirements, per ICRA.
Why does SMFG keep infusing capital into its India NBFC arm?
SMFG views India as its third-largest exposure market in Asia and Oceania and treats SMICC as its primary retail lending vehicle in the country, per CareEdge Global’s August 2025 rating rationale. SMICC’s disbursement CAGR surged to 70% post-acquisition during FY22–FY25, compared to a negative 3% CAGR in the pre-acquisition period of FY19–FY22, a pace that requires consistent equity top-ups to keep gearing ratios manageable, per CareEdge Global. Consolidated managed gearing stood at 5.0 times as of March 31, 2025, per ICRA. ICRA expects SMFG to continue providing capital support given SMICC’s strategic importance to the group’s multi-franchise Asia growth strategy.
