Chennai based NBFC, IFMR Capital, has signed a Memorandum of Understanding (MoU) with Japanese multinational banking and financial services company Sumitomo Mitsui Banking Corporation (SMBC) to facilitate investments in India’s priority sector. As per the MoU, SMBC would utilize IFMR Capital’s relationships, product structuring capability, risk management and credit underwriting processes in acquiring priority sector assets in the country. The partnership will play a key role in developing interest amongst Japanese and other investors from the APAC region in financially excluded sectors in India.
Speaking about the strategic nature of the partnership post the MoU signing in Singapore, Dr. Kshama Fernandes, MD & CEO of IFMR Capital said “We are very excited about partnering with an entity of SMBC’s repute to explore and participate in the growth story of emerging sectors in India. This partnership is of strategic importance to both organisations as we expand our footprint in promoting financial inclusion globally. It is also a vote of confidence in the strong capital markets approach created by IFMR Capital for providing access to finance for all. We believe this will be a harbinger of increased interest from other investors in the APAC region.”
For IFMR Capital, this is the second association with a foreign financial institution in the APAC region. This, coupled with the close association with Asian Development Bank, other FIIs and over 100 domestic NBFCs/MFIs (originators) is a testimonial of the spreading goodwill of IFMR Capital, both domestically and internationally.
Currently, SMBC operates through its sole branch in New Delhi. The Japanese Bank is all set to open its second branch in Mumbai, soon. Mr. Shosuke Mori, Managing Director & Head of Asia Pacific Division of SMBC stated that“With our expanding footprint and growing business in India, it is imperative to find sustainable solutions to overcome the challenge of Priority Sector Lending. Towards this, we strongly believe that through our partnership with IFMR Capital – an unique NBFC of International repute - we can certainly achieve our objective, successfully”.