Central Bank of India said that it has entered into a strategic co-lending partnership with Mamta Projects (MPPL) to offer micro, small and medium enterprises (MSME) loans to borrowers at competitive rates.
The participation by both the entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India and Mamta Projects.Mamta Projects is a new-age, tech and risk-analytics focused lending institution. MPPL is an RBI regulated non-banking financial company and its business verticals include MSME lending, education loans, personal loans and anchor based financing.
Under this arrangement, Mamta Projects will originate and process MSME loan 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 loans under priority sector under mutually agreed terms. MPPL will service the loan account throughout the life cycle of the loan.
Central Bank of India is a public sector bank. The Government of India holds 93.08% stake in the bank.
The state-run lender's net profit rose 27.26% to Rs 318.17 crore on 8.24% increase in total income to Rs 7,064.96 crore in Q2 FY23 over Q2 FY22.
The scrip slipped 1.14% to currently trade at Rs 30.40 on the BSE.
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