Sumitomo Mitsui Banking Corporation (SMBC) is expanding presence in India by opening a branch in Chennai.
Global banking corporation has brought $600 million into Indian operations in 2020. The infusion doubles SMBC’s capital commitment to its India operations (to USD 1.2 billion), the bank said in a statement.
This is SMBC’s third foothold in India following the successful establishment of branches in New Delhi and Mumbai. The capital injection would allow the bank to substantially increase the group borrower and single borrower exposure limits to better serve customers.” Toshitake Funaki, Country Head of India and General Manager, New Delhi Branch.
According to rating agency CRISIL SMBC Bank’s Indian operations started in December 2012 with the opening of its first branch in New Delhi. In March, 2017, the bank opened its second branch in Mumbai. The total asset size of SMBC Indian branch was Rs 15,724 crore as on December 31, 2018.
SMBC maintains a strategic alliance with Kotak Mahindra Bank since the acquisition of a minority stake in 2010, and with Northern Arc Capital, where SMBC acquired a 5.4% equity interest in December 2019.
With expansion on its mind, Chennai branch will assist SMBC grow its customer base in south India. Customers will be able to leverage SMBC’s global network to do business in a variety of sectors and locations.
The new branch will provide services to a growing number of Indian and foreign companies operating in Tamil Nadu and neighbouring regions. These include companies operating in sectors as diverse as automotive, consumer durables, technology and others.
Bank is aiming to become more Asia-centric and India remains extremely vital for the growth of our global business. As per the research of JETRO in 2019, there were as many as 1,454 Japanese companies registered in India. The foreign direct investment will continue to pour into the country (India).
SMBC Group is looking to provide syndicated and bilateral loans and specialist financial advisory services for project, trade and asset finance, as well as deposits and foreign exchange services in the region.