Central Bank of India said that it has entered into a strategic co-lending partnership with Moneywise Financial Services to offer MSME Loans at competitive rates.
The said loans would be subject to compliance with the applicable laws and guidelines issued by Reserve Bank of India (RBI).
"The participation by both the entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India and Moneywise Financial Services, the public sector bank said in a statement.
Moneywise Financial Services (MFSPL) is an RBI regulated non banking financial company focused on MSME Lending. MFSPL's AUM as on December 2022 stood approximately at Rs 800 crore.
Under the arrangement, Moneywise Financial Services will originate and process MSME loan proposals under MSME 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 mutually agreed terms. Moneywise Financial Services will service the loan account throughout the life cycle of the loan.
The co-lending arrangement is expected to help both the entities to expand their reach across India.
Central Bank of India is engaged in providing banking and financial services with wide range of products and services to individuals, commercial enterprises, large corporates, public bodies and institutional customers.
The PSU bank's net profit increased 64.16% to Rs 458 crore on 17.04% rise in total income to Rs 7,636 crore in Q3 FY23 over Q3 FY22. Net interest income (NII) grew by 19.33% YoY to Rs 3,285 crore in Q3 FY23.
The scrip shed 0.62% to currently trade at Rs 1146.65 on the BSE.
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