TOKYO, Japan — Sumitomo Mitsui Financial Group stated on Tuesday that it will pay $2 billion for one of India’s leading nonbank lenders. Sumitomo Mitsui will own 74.9 percent of Fullerton India Credit Co. as part of the Japanese bank’s strategy to grow across Asia. This year, the business has already made investments in a number of financial institutions in Vietnam and the Philippines. Sumitomo Mitsui will buy the interest from Temasek, a Singaporean investment firm, subject regulatory permission, and plans to buy the whole of Fullerton in the future. Fullerton is one of India’s leading nonbank lenders, having been founded in 1994. Personal lending is its main activity, with outstanding loans of 250.5 billion rupees ($3.3 billion) in fiscal 2021. It has 14,000 employees and 650 locations around the country. According to Sumitomo Mitsui, Fullerton’s revenues in fiscal 2021, which ended in March, were 47.6 billion yen, down 12 percent from the previous year, and the company lost 18.2 billion yen, compared to a 11.4 billion yen profit the year before./n
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