Japan’s SMFG has completed the acquisition of a 74.9% stake in Fullerton India for US$2bn. This deal makes SMFG the first Japanese lender to venture in to India’s retail banking sector.
Perhaps the greatest benefit of this deal to Sumitomo Mitsui Financial Group (SMFG) is the platform it provides to smoothly access the retail banking sector and the effect that can have on its plans to expand within the region.
Fullerton India has established a solid presence across all regions of India, with over 600 branches and a variety of loan offerings to SMEs, business owners, and individuals. Its offerings are also properly categorized to serve its different customer segments: Urban, Rural, Digital, and Housing Finance.
SMFG plans to revamp the existing business model to make room for expansion and growth. The firm will also gain full control of Fullerton India in the nearest future, as it intends to acquire the remainder of the equity the firm has.
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