Bengaluru, 1st October 2021: In pursuance of RBI guidelines on Co-Lending between Banks and NBFCs/HFCs to Priority Sector, Indian Bank has today entered into Memorandum of Understanding (MoU) with three leading NBFCs/HFCs of the country, namely Indiabulls Housing Finance Limited, Indiabulls Commercial Credit Limited and IIFL Home Finance Limited.
All scheduled commercial banks may engage NBFC to co-originate loans for the creation of priority sector assets. The arrangement entail joint contribution of credit at the facility level, by both lenders. It also involve sharing of risks and rewards between the bank and the NBFC for ensuring appropriate alignment of respective business objectives, as per the mutually decided agreement between the bank and the NBFCs.
The Bank expects to generate substantial business under Priority Sector through Co-Lending during Q3 of the current fiscal.
About Indian Bank:
Established in 1907, Indian Bank is a premier Public Sector Bank with a dominant Pan-India presence. Government of India owns 88.06% of the shareholding. It is the First Public Sector Bank to install ATM at Harbour, Madras in 1989. The Bank has vast branch network with 6004 branches, 5428 ATMs & BNAs, 9095 BCs, overseas branches in Colombo and Singapore in addition to over 225 overseas correspondent banks.
Government of India had announced the Amalgamation of Allahabad Bank – a bank with 155 years legacy – into Indian Bank in 2019. Indian Bank commenced its operation as an amalgamated entity from 1st April 2020. The integration of CBS systems of both the Banks was completed on 14th February 2021. Indian Bank has constantly thrived to adapt latest technology and modify their techniques.
Apart from various initiatives undertaken by Indian Bank, one of the out-of-the-box initiative was launch of MSME Prerana – an Online Business Mentoring Programme for MSME entrepreneurs launched by Smt. Nirmala Sitharaman, Minister of Finance, Govt. of India on 6th October, 2020. It is a Pan-India Programme in vernacular languages (in all states / UTs), presently running in UP and Tamil Nadu. To strengthen this initiative, Indian Bank also launched Ind Spring Board, financing for Start-ups and entered into MOU with IIT Madras – Incubation Cell, IISc Bangalore and M/s. The Chennai Angels for identifying the eligible Start-ups for bank finance.
Over the years, Indian Bank has set new benchmarks in providing efficient banking services to its different client groups and has also emerged as a front– runner in delivering excellent customer service.
This news was shared to Prittle Prattle News via press release.
