Sumitomo Mitsui Banking Corporation (SMBC) is to team up with IFMR Capital to offer a range of leasing and financial services to companies in the agriculture and micro, small and medium sized enterprise (MSME) sectors in India.

The two companies have signed a memorandum of understanding designed to help IFMR Capital to strengthen its capabilities. IFMR Capital is a non-banking finance company which was established in 2008.

Lending guidelines established by the Reserve Bank of India dictate that banks extend a specified portion of their lending assets to sectors, such as agriculture and MSMEs, which they have classified as a priority.