Sumitomo Mitsui Financial Group 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 Japan¡¯s second-largest lender steps up its expansion efforts in the country.
The appointment is part of a broader leadership reshuffle across Sumitomo Mitsui¡¯s banking and nonbanking operations in India, said the people who asked not to be identified because the information is private.
Garg, currently the Mumbai-based chief business officer at Sumitomo Mitsui Banking Corp.¡¯s Indian banking unit, will succeed Hiroyuki Mesaki. Garg, a banking veteran of more than 25 years, joined SMBC in 2019 and previously spent nearly 16 years at Barclays.
The changes come as Sumitomo Mitsui has invested billions to expand in Indian financial services from retail to wholesale banking, such as a landmark deal last year that made it the biggest shareholder of Yes Bank. Over the past five years, Sumitomo Mitsui has spent roughly $5 billion snapping up stakes in Indian firms.
Spokespersons at SMFG and SMBC did not immediately reply to emails seeking comment.
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 completed its acquisition of a 20% stake in Shriram Finance in April, marking the largest cross-border investment in the domestic financial services sector.
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