Shinhan Bank CEO Jung Sang-hyuk, right, and HDFC Credila Financial Services CEO Arijit Sanyal at a signing ceremony held in a hotel in Mumbai on Wednesday. [SHINHAN BANK]
Shinhan Bank is acquiring 10 percent of India’s largest non-banking financial company in education loans for $180 million as part of the bank’s effort to expand globally.
Shinhan Bank signed an agreement to acquire the stake of Mumbai-headquartered HDFC Credila Financial Services. The bank will take ownership of the new shares being issued by Credila.
A non-banking financial company may be involved in a wide range of financial services, including mortgages and car loans.
Credila, established in 2006, has huge potential amid India’s education fever, an increasing number of students studying overseas and a rise in demand for Indian talent in the fields of science, technology, engineering and mathematics, according to Shinhan Bank.
The bank entered India in 1996 and currently runs six branches. It raked in 10 billion won ($7.4 million) in profit from the country last year.
“The importance of the Indian market is becoming bigger than ever with its unlimited growth potential due to the restructuring of global supply chain networks, geopolitical stability and a population of 1.4 billion,” said Shinhan Bank CEO Jung Sang-hyuk. He pledged to cooperate with not only traditional financial companies but also digital firms in a bid to follow the rapidly changing global trend.
BY JIN MIN-JI [jin.minji@joongang.co.kr]
Credit: Source link