Karnataka Bank and Satin Creditcare Network Limited enter into Co-Lending Agreement

Karnataka Bank (KBL), a leading Private Sector Bank and Satin Creditcare Network Limited (SCNL), a leading NBFC - Micro Finance Institution (MFI) registered with the Reserve Bank of India, have entered into a Co-Lending arrangement to provide financial support to Joint Liability Groups (JLG) of economically active women in both rural and semi-urban areas and to give impetus to the micro credit facilities segment of the country.

In line with the Reserve Bank of India's guidelines on Co-lending by banks and NBFCs to Priority Sector to improve the flow of credit to unserved and underserved segments, the arrangement will leverage Karnataka Bank's low cost of funds and end-to-end digital capabilities of KBL and Satin through Yubi platform for co-lending, to help the sourcing, servicing and recovery of small-ticket income generation priority sector loans.

Speaking on this arrangement, Shri Srikrishnan H, Managing Director & CEO, Karnataka Bank, said that, "Karnataka Bank is delighted to enter into this strategic colending arrangement with Satin through the platform of Yubi, our Fintech partner. This is part of our stated strategy to collaborate and growth our Advances book in alliance with Fintech partners and controlling the in-flow with the Bank's credit standards. Our arrangement with Satin will improve our presence in the area of micro credit facilities in rural and semi-urban areas. Digital co-lending partnerships covering multiple credit areas will be pursued by the Bank to create a sustainable focus on economic empowerment and financial inclusion."

Shri. HP Singh, Chairman-cum-Managing Director of SCNL, expressed his pleasure about the collaboration, saying, "This strategic alliance with Karnataka Bank is a significant milestone for SCNL. By combining our strengths, we aim to uplift women entrepreneurs in rural and semi-urban India, thereby enhancing sustainable economic growth. Co-lending opens door to more opportunities of broadening our presence. We look forward to the positive outcomes this collaboration will bring for the communities we serve."

Shri. Sekhar Rao, Executive Director of Karnataka Bank, stated, the tie-up shall create synergy between both partners and it will also cater to the financial needs of customers across a wide socio-economic spectrum.

The agreement was exchanged at Bengaluru by Shri Srikrishnan H, Managing Director & CEO of Karnataka Bank and Shri HP Singh, Chairman cum Managing Director of SCNL. Also present on the occasion were, Shri Vinaya Bhat P J, General Manager, Credit Marketing Department and other executives of Karnataka Bank & SCNL.

Shares of Satin Creditcare Network Limited was last trading in BSE at Rs. 269.75 as compared to the previous close of Rs. 271.90. The total number of shares traded during the day was 56005 in over 1243 trades.

The stock hit an intraday high of Rs. 275.45 and intraday low of 266.60. The net turnover during the day was Rs. 15177039.00.

Shares of The Karnataka Bank Limited was last trading in BSE at Rs. 237.40 as compared to the previous close of Rs. 237.30. The total number of shares traded during the day was 193309 in over 2953 trades.

The stock hit an intraday high of Rs. 242.20 and intraday low of 235.20. The net turnover during the day was Rs. 46202217.00.

Source : Equity Bulls

Keywords

SatinCreditcareNetwork INE836B01017 TheKarnatakaBank INE614B01018 CoLendingAgreement