Central Bank of India rallied 3.63% to Rs 18.55 after the PSU bank said that it has entered into a strategic co-lending partnership with Protium Finance and lncred Financial Services (IFSL) to offer loans to MSME borrowers at competitive rates.
Protium Finance is an RBI regulated non-banking finance company with branch network spread across 11 states and an AUM of 1,671 crore as on 31 July 2022 and a strong Customer franchise at 1,08,447.
Incred Financial Services is also an RBI regulated non-banking financial company with a branch network spread across 9 States. Its business verticals include consumer loans, education loans and MSME lending.
The state-owned lender said that the partnership will provide greater expansion of portfolio to these finance companies.
Under this arrangement, Protium Finance and ISFL will originate and process MSME proposals under priority sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80% of the MSME priority sector loans under mutually agreed terms, the bank stated.
Protium Finance and ISFL will service the loan account throughout the life cycle of the loan. The co-lending arrangement is expected to help both the entities to offer convenient experience and customer delight as well as help expand reach across India, the public sector bank said in the press release.
Central Bank of India is a public sector bank. The bank has a pan India presence with network of 4,528 branches, 2,999 ATMs and 10,644 BC Points with total 18,171 touch points as on June'22.
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The bank reported 14.2% increase in standalone net profit to Rs 235 crore on a 0.9% rise in total income to Rs 6,357 crore in Q1 FY23 over Q1 FY22.
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