SMFG India Credit wants to lend Rs 75,000 crore till FY26

22 Jun 2023 , 11:51 AM

Mid-sized non-banking lender SMFG India Credit, formerly Fullerton India Credit, plans to double its loan book from its current level of Rs 36,000 crore over the next two to three years. For an undisclosed fee, Japanese banking giant SMFG acquired a controlling 74.9% ownership in Fullerton in December 2021. As of May 2023, the company changed its name to SMFG India Credit.

The company was severely impacted by the second pandemic wave and reported a net income of Rs 894.5 crore last fiscal year compared to a loss of Rs 1500 crore in FY22. With loan disbursements doubling to Rs 30,186.8 crore as of March and increasing to Rs 36,000 crore since then, the company might increase by a factor of ten in FY23 over FY22.

Our assets have already increased over the last two years, and we anticipate that they will do so by another factor of two to three over the coming years, thanks to house loans, co-lending, and a more targeted strategy for backing Japanese firms who are present in this country and are original equipment manufacturers.

‘Since we have not yet investigated the traditional Japanese OEMs, we are looking at new items. The financing of Hitachi’s construction machinery has already begun. We’re also looking into co-lending with banks as a new offering. Therefore, in the next three years or so, we should be able to quadruple our business, the company’s managing director, Shantanu Mitra, told a small group of journalists on Wednesday.

He said that we are already more than completely funded with equity and do not require more funding at this moment. That indicates that we haven’t discussed an IPO in some time.

Regarding the dramatic reversal, Mitra stated, ‘The fact that we were able to recover our Rs. 1,500 crore loss in just a year speaks highly of the calibre of our product. As you can see, we multiplied our profit by ten, going from Rs 100 crore to roughly Rs 1,000 crore in FY23, while our disbursals nearly doubled from a 15% contraction in FY22.

He continued: ‘Our sole focus is affordable housing, and of the Rs 36,000 crore total loan book, Rs 6,000 crore is from the home loan book.’

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