Shinhan Bank Invests in Stake of India’s Top Student Loan Company ‘Credila’

Equity Investment for Entry into India NBFC Market
Securing 10% Stake... Collaboration with Global Investment Firms

Shinhan Bank is acquiring a stake in the No. 1 non-banking financial company (NBFC) for student loans in India. This is the first time Shinhan Bank is entering the global market through equity investment rather than through branches or corporate entities.

On the 3rd, Shinhan Bank announced on the 4th that it signed a share acquisition agreement with HDFC Credila Financial Services (Credila), the leading NBFC student loan company in the Indian market, in Mumbai, India. This is the first time a domestic commercial bank has made an equity investment in an Indian company.

This equity investment will be made by Credila conducting a capital increase and Shinhan Bank subscribing to new shares worth approximately $180 million (about 240 billion KRW). Through this, Shinhan Bank will acquire about a 10% stake in Credila.

The NBFC market plays an important role alongside banks in the Indian financial market, providing specialized loan services such as home loans, vehicle loans, and student loans. Especially, thanks to regulatory easing and support policies by the Indian government, the retail financial sector is rapidly growing, attracting high interest from global investment firms and foreign investors.

Credila, established in 2006 as a specialized financial company handling student loans, holds a solid No. 1 position in the market. It is a company expected to continue growing due to factors such as ▲India’s strong educational enthusiasm ▲increasing number of students studying abroad ▲rising demand for STEM (Science, Technology, Engineering, Mathematics) talents in major advanced countries.

This investment is jointly conducted by Sweden’s global investment firm EQT Private Capital Asia and India’s top investment firm Chrys Capital, after which Shinhan Bank will become a co-shareholder of Credila along with India’s largest private bank, HDFC Bank.

Shinhan Bank entered India in 1996, the earliest among domestic banks, and currently operates six branches. The profit and loss of the India headquarters increased by 117%, from 4.6 billion KRW in 2022 to 10 billion KRW in 2023.

Jung Sang-hyuk, CEO of Shinhan Bank, stated, “The importance of the Indian market is growing more than ever due to global supply chain restructuring, geopolitical stability, and the infinite growth potential from a population of 1.4 billion. By jointly investing in Credila, which has the best competitiveness in the Indian retail loan sector, along with partners who have secured local competitiveness, Shinhan Bank plans to further enhance the financial competitiveness of its India headquarters and develop various collaborative projects.”