Fullerton India Credit Company has become a subsidiary of Sumitomo Mitsu Financial Group (SMFG), following the completion of a transaction to purchase 74.9% from Fullerton Financial Holdings (FFH).
Fullerton India’s management team will continue to operate under the leadership of current Managing Director and Chief Executive Shantanu Mitra, the company said in a statement.
As part of the transaction, Fullerton India’s Board will be reconstituted to comprise Nobuyuki Kawabata, Rajeev Veeravalli Kannan, Hong Ping Yeo, Anindo Mukherjee, Shantanu Mitra, Shirish Moreshwar Apte, Dr. Milan Robert Shuster and Ms. Sudha Pillai.
In July 2021, Japan’s SMFG had signed pact to purchase a 74.9% stake in non-banking finance company Fullerton India Credit for about $ two billion. SMFG will eventually raise its stake to 100% in Fullerton India over a period of time.
The acquisition gives SMFG access to a pan-India footprint across 25 states, 600 towns and 58,000+ villages through 698 branches in India.
“With the rapid deployment of vaccines and steady decline in Covid-19 infection rates, we are witnessing a strong revival of economic activity in India. There is a steady pick up in credit demand and healthy loan growth. In addition, portfolio quality is also demonstrating encouraging signs of improvement,” said Mitra.