• SMFG boosts India expansion after $5B investment spree
• Plans to increase lending, hire more staff, and scale acquisitions
• Focus on building a full financial services franchise in India

Sumitomo Mitsui Financial Group (SMFG), Japan’s second-largest bank, is accelerating its expansion in India by increasing lending, hiring more talent, and strengthening its portfolio of financial services. The bank has already invested nearly $5 billion over the past four years to deepen its presence in one of the world’s fastest-growing major economies.

SMFG has been actively building its India business across retail and wholesale banking. Its recent investment in Yes Bank, where it is now the single largest shareholder, marks a major step in its long-term plan. According to Rajeev Kannan, head of SMFG’s India division, the priority now is to support and scale these platforms as part of the group’s broader Asia strategy, which also includes Vietnam, the Philippines, and Indonesia.

The bank has acquired significant stakes in key financial firms to fuel growth. In 2021, it purchased a majority stake in Fullerton India Credit for about $2 billion and later took complete ownership, rebranding it as SMFG India Credit. In 2024, SMFG bought a 20% stake in Yes Bank, with approval to increase its holding up to 24.99%.

While SMFG may slow further acquisitions to focus on integration, it remains open to deeper collaborations, including with US investment bank Jefferies, where it is raising its stake.

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The lender is also strengthening its workforce. Yes Bank and SMFG India Credit employ over 20,000 people each, and both plan to hire more. SMFG itself has more than 400 employees across five Indian branches, including its fast-growing GIFT City and Bengaluru locations.

SMFG is also setting up a global capability center in Chennai, with capacity for 600 staff, to support technology and operations. Kannan said the move reflects the bank’s commitment to scale, efficiency, and tapping India’s strong talent base.