FICCL was formed in December 2005 and was earlier owned by Temasek Holdings Private Ltd Singapore (Temasek), indirectly through its investment arm Fullerton Financial Holdings Pte, Singapore (FFH).
However, on November 30, 2021, the company announced completion of its transaction with Sumitomo Mitsui Financial Group, Inc. (SMFG) wherein SMFG acquired 74.9% stake in FICCL from Fullerton Financial Holdings (FFH) and the residual is held by Fullerton Financial Holdings (FFH), which is a wholly owned subsidiary of Temasek group.
SMFG is Japan based and is one of the largest banking and financial services groups in the world having presence in 40 countries, with asset size of approx. USD 2.2 trillion as on 31st March 2021 and a current market capitalization of approx. USD 50 billion and is also a Globally Systemically Important Bank (G-SIB).
Post completion of the purchase, FICCL has become a consolidated subsidiary of SMFG. Further, SMFG is expected to eventually purchase 100% of Fullerton India over a period of time.
FICCL’s product offerings include secured products which comprise primarily of mortgages/loans against property, and commercial vehicle loans. The unsecured product offerings comprise of personal loans and rural group loans. The company operates through 628 branches.
Fullerton India Credit Company Ltd. is rated as AAA by CRISIL and Care.
Q2FY22 | H1FY22 | FY21 | |
Total Income | 8.58 | 17.76 | 47.58 |
PAT | 0.20 | -4.55 | -11.57 |
Total Asset | 211.64 | - | 237.82 |
Net NPA | 3.78% | - | 2.58% |
CRAR | 19.80% | - | 19.20% |
SMFG owns around 74.9% stake in FICCL as on December 01, 2021,
Capitalization Adequacy
The company reported Capital Adequacy Ratio (CRAR) of 19.82% with Tier I CAR of 13.03% as on September 30, 2021, as compared to CRAR of 24.15% with Tier I CAR of 19.62% as on September 30, 2020.
Further, post Q2FY22 Fullerton Financial Holdings, through its investment arm, Angelica Investment Pte Ltd, infused Equity Capital aggregating to Rs.250 crore into Fullerton India Credit Company Limited. Considering demonstrated capital support from FFH in the past.
Comfortable liquidity profile
As on September 30, 2021, company had unutilized lines of Rs. 12.6 billion. Further as cited by the Management, the company has been maintaining average liquidity of around Rs. 45 billion in the form cash and High-Quality Liquid Assets (HQLA) in most of FY21 to tide over any unexpected shocks.
Diversified funding profile
As on September 30, 2021, the Company had 43% of borrowings through long term capital market borrowings, 34% through Bank borrowings, 20% through overseas borrowings and 3% by way of commercial paper.
Asset quality deterioration
Pandemic pressure on asset quality Company reported GNPA of 10.14% and Net NPA of 3.78% with provision coverage ratio (PCR) of 66.26% as on September 30, 2021, as compared to GNPA of 1.70% and Net NPA of 0.90% with PCR of 46.82% as on September 30, 2020.
The increase in the GNPA is primarily attributed to the stress panning out across FICCL’s portfolio owing to pandemic.