Fullerton India Credit Company Limited

The Transformation Of Fullerton India Credit Co. Ltd.

By Pradyumn Yadav Company, Grow Money

Introduction

SMFG India Credit Co. Ltd., formerly known as Fullerton India Credit Co. Ltd., stands at the forefront of financial empowerment in India. As a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), it has seamlessly integrated itself into the financial landscape since its inception in 2007. Today, as a proud member of the esteemed SMBC Group, SMFG India Credit is a leading NBFC with a nationwide presence, reaching over 3.2 million customers through a network of 729 branches spanning 600 towns and approximately 65,000 villages.

The Strategic Evolution: SMFG’s Acquisition

In a significant development in July 2021, Sumitomo Mitsui Financial Group (SMFG) acquired a commanding 74.9% stake in Fullerton India Credit Co. Ltd. The deal concluded in November 2021, marking a pivotal moment in the Indian financial sector. Effective May 11, 2023, Fullerton India Credit Company Limited was rebranded as SMFG India Credit Company Limited (SMICC), ushering in a new era.

The Powerhouse Behind SMFG India Credit: Sumitomo Mitsui Financial Group (SMFG)

Sumitomo Mitsui Financial Group (SMFG) is the cornerstone of SMFG India Credit’s success, holding a 74.9% stake in the company. As one of the largest global banking and financial service groups, SMFG boasts a heritage exceeding 400 years in Japan. Listed on the Tokyo and New York Stock Exchanges, SMFG is a global systemically important bank (G-SIB) with high credit ratings. This partnership ensures stability and global financial expertise for SMFG India Credit.

Unveiling Pragati Ki Nayi Pehchaan

With the strategic acquisition came a transformative rebranding. SMFG India Credit Company Limited unveiled its new brand identity, “Pragati Ki Nayi Pehchaan” (The New Face of Progress), aligning with its new avatar under SMFG. The unveiling, a hybrid event broadcasted nationwide, showcased the evolution of Fullerton India Credit Company Limited into SMFG India Credit Company Ltd. The new logo signifies this transition, capturing the essence of change and progress.

Financial Triumphs: FY23 Performance

In the financial year of FY23, SMFG India Credit Company reported a remarkable 10x growth with a Profit Before Tax of INR 8,945 Million. Total disbursals surged by 98%, reaching INR 252,029 Mn from INR 127,377 Mn in FY22. The Asset Under Management (AUM) exceeded INR 300 Bn, standing at INR 301.86 Bn. This robust performance reflects the company’s focus on underserved rural and semi-urban markets.

Shantanu Mitra, CEO & MD of SMICC, attributes this success to the synergy of a wide distribution network, diversified product offerings, and a strengthened digital ecosystem. The AUM figure underscores the strategic alliances in the digital business, indicating a reimagined digital customer experience and sustained growth momentum.

Commitment to Social Upliftment: CSR Initiatives

Beyond financial achievements, SMFG India Credit demonstrates a commitment to social upliftment through its Corporate Social Responsibility (CSR) initiatives. These initiatives aim to empower the underprivileged and bring about positive change in rural communities. SMFG India Credit collaborates with NGOs and utilizes its rural branches to expand the reach of these programs.

Key CSR projects include:

Nirmaya– Mobile Health Vans (MHV): Operating 17 MHVs covering 100+ villages across 10 states, SMFG India Credit supports over 1,000 OPDs daily.
Project Jyoti- Addressing avoidable blindness, this project provides eye care to the underprivileged through 16 Vision Care Centres and 2 Mobile Vision Care vans, benefiting over 1,17,000 people in FY23.
Sakhi– Financial Literacy Programme: Empowering more than 30,000 women in FY23, this program enhances financial awareness and decision-making, elevating the social status of women in their communities.
Krishi Mitra– Environmental Sustainability: Promoting organic farming and environmental sustainability, this project involves over 5000 farmers, contributing to a better and sustainable world.

Conclusion

SMFG India Credit Co. Ltd., with its redefined identity and robust financial performance, stands as a beacon of progress and financial inclusion. The strategic partnership with Sumitomo Mitsui Financial Group ensures a solid foundation for growth, while CSR initiatives underscore the commitment to societal well-being. As SMFG India Credit continues to evolve, it is poised to accelerate and transform the financial landscape in FY24 and beyond.