SMFG India Credit Ratings at AA- by Japan Credit Rating Agency, four steps above India’s sovereign rating.
This means that its subsidiary, Sumitomo Mitsui Financial Group, has received an international credit rating of “AA-” with a stable outlook from the Japan Credit Rating Agency for SMFG India Credit Private Limited. That’s a big deal because it puts SMICC a full four notches above India’s sovereign rating and just one notch below its parent company’s “AA” rating.
JCR emphasized that “SMICC plays a critical role in the SMFG Asia Multi-Franchise Strategy, which focuses on expanding SMFG’s presence in Asia with a keen focus on financial inclusion and serving the underprivileged, especially in India.” The operations of SMICC align with these objectives through the provision of innovative financial products aimed at empowering people across India.
Pankaj Malik, Chief Financial Officer of SMFG India Credit, said, “We are proud of this achievement. He said, “The AA- rating is an assurance that SMFG India Credit remains committed to financial discipline, operational excellence, and customer-oriented growth. The sustained growth, apart from strategic alignment with the global objectives of SMFG. Places it well in the fast-growing retail loan market in India.” Malik further added, “This recognition further encourages SMICC to continue fostering financial inclusions and delivering value to all its stakeholders.”.
The growth of SMICC is reflected in the growing domestic consumer credit market. The strong performance of the company is backed by the support of SMFG and has maintained a healthy loan book. SMICC, through its subsidiary SMFG India Home Finance Co. Ex Fullerton India Home Finance Co., Ltd., shortly known as SMFG Grihashakti, exists in over 670 towns. And 70,000 villages through a wide network of 1,000+ branches and upwards. Comprising over 25,000 employees to extend lending solutions to the most diversified sets of customers comprising retail borrowers to small businesses.
Its product portfolio includes SME financing, commercial vehicle loans, two-wheeler loans, home loans, home improvement loans, loans against property and shares, personal loans, and rural livelihood advancement loans. In so doing, SMICC has brought many people into the ambit of formal credit for the first time. And contributed to enhancing financial inclusion across the country.
SMFG is the parent company and is considered one of the largest banking and financial service groups in the world. Its headquarters are in Japan, and its businesses are spread over a wide array of financial services. Such as commercial banking, securities, leasing, and consumer finance. Shares of SMFG trade on both the Tokyo and New York Stock Exchanges. Having a market capitalization of about $77.5 billion as of March 2024. It also holds various solid credit ratings from several world-renowned agencies. Such as Moody’s Investors Service A1 and Standard & Poor’s A-.
This recent credit rating by JCR. Therefore, underlines the growing importance of SMICC in the Indian market. And how successfully it is in tune with the larger goals of SMFG. With a strong commitment to financial inclusions and customer satisfaction, it is well-positioned to continue to grow and succeed.
-ANI
