SMFG India's credit rating has been awarded 'A/Stable' by CareEdge Global, two notches higher than that of India's sovereign rating.
SMFG India Credit Secures Strong International Rating, Bolstering Its Position in India's Retail Credit Landscape
SMFG India Credit (SMICC), a leading non-banking finance company (NBFC) based in India, has recently been awarded a prestigious international rating by CareEdge Global. The Long-Term Foreign Currency Issuer Rating of 'CareEdge A/Stable' is a significant milestone for SMICC, and it marks a notable achievement in the company's journey as a key pillar of Sumitomo Mitsui Financial Group's (SMFG) Asia Multi-Franchise Strategy.
The rating, which stands two notches above India's sovereign rating, underscores SMICC's strong creditworthiness, robust operational framework, and financial stability. This international recognition reflects the company's dedication to building a scalable, inclusive, and resilient financial services platform in India.
Key factors contributing to SMICC's solid status and growth prospects include its strong parental backing, diversified product portfolio, robust risk management, and liquidity. With 100% ownership by SMFG, the company benefits from continuous capital infusions, bolstering its capitalization and financial resilience.
SMICC offers a diverse range of lending solutions, targeting underserved segments in the retail credit sector. This includes products such as SME financing, commercial vehicle and two-wheeler loans, home loans, home improvement loans, loans against property and shares, personal loans, and rural livelihood advancement loans. The company's subsidiary, SMFG Grihashakti, also contributes to this expansive lending portfolio.
The international rating highlights SMICC's efficient risk management, a diversified funding base, and healthy liquidity position. These factors, combined with the company's exclusive focus on the Indian market, demonstrate its increasing scale and impact within the country.
Mr. Pankaj Malik, Chief Financial Officer of SMFG India Credit, commented on the rating, stating that it validates their strong fundamentals and reinforces the trust placed in them by stakeholders.
As of 31 December 2024, SMFG has a market capitalization of approximately US$93.5 billion. Headquartered in Japan, SMFG is listed on the Tokyo and New York Stock Exchanges, making it one of the largest global banking and financial service groups.
Since its inception in 2007, SMFG India Credit has been operating in India and has expanded its presence across 670+ towns and 70,000+ villages. As a leading NBFC-ICC registered with the Reserve Bank of India, SMFG India Credit operates through 1000 branches and employs over 25,000 people.
Given these factors, SMFG India Credit is well-positioned for future growth in India's retail credit market. The international A/Stable rating by CareEdge Global signals market confidence in the company's sustainable growth trajectory and credit profile, further reinforcing SMICC's position in India's fast-evolving retail credit landscape.
[1] SMFG India Credit Co. Ltd. - https://www.smfggroup.com/en/business/india/ [2] CareEdge Global - https://www.careedgeglobal.com/ [4] Financial trends and analysis - [Confidential company data]
1. With the CareEdge A/Stable rating, SMFG India Credit's strength in business, finance, and investing is evident, as it showcases the company's strong creditworthiness, robust operational framework, and financial stability.
2. As SMFG India Credit continues to grow and offer investing opportunities in various retail credit sectors, it reinforces its position as a business leader, demonstrating a dedication to financial services that can scale, include, and remain resilient in India.
