Sumitomo Mitsui Financial Group Inc. is promoting Rakesh Garg to lead its Indian banking business, making him the first local executive to hold the position. According to people familiar with the matter, as reported by NDTV Profit, Garg, currently the Mumbai-based chief business officer at Sumitomo Mitsui Banking Corp.'s Indian banking unit, will succeed Hiroyuki Mesaki. The appointment is part of a broader leadership reshuffle across Sumitomo Mitsui's banking and non-banking operations in India, as Japan's second-largest lender steps up its expansion efforts in the country.
Garg, a banking veteran of more than 25 years, joined SMBC in 2019 and previously spent nearly 16 years at Barclays. As reported by NDTV, the changes come as Sumitomo Mitsui has invested billions to expand in Indian financial services from retail to wholesale banking. Spokespersons at SMFG and SMBC did not immediately reply to emails seeking comment.
Over the past five years, Sumitomo Mitsui has spent roughly $5 billion snapping up stakes in Indian firms, according to NDTV reports. The company made a landmark deal last year that made it the biggest shareholder of Yes Bank Ltd. Japan's biggest banks are scaling up investments in Indian financial firms, betting on the world's fastest-growing major economy, as they contend with a shrinking domestic market and relatively low interest rates at home.
Mitsubishi UFJ Financial Group Inc. completed its acquisition of a 20% stake in Shriram Finance Ltd. in April, marking the largest cross-border investment in the domestic financial services sector, as reported by NDTV. This represents part of the broader trend of Japanese banks expanding their presence in India's growing financial services market.
