Central Bank of India has entered into a co-lending partnership with Ugro Capital to offer loans to MSME borrowers under priority sector, subject to the compliance with the applicable law(s) including the applicable guidelines issued by the RBI.
As per the bank's press statement, the participation from both the entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India (CBI) and Ugro Capital. Ugro Capital is a RBl regulated non-banking finance company with pan India branch network and has a track record of good customer acquisition.
Under this arrangement, Ugro Capital will originate and process loans to MSME borrowers as per jointly formulated credit parameters & eligibility criteria and Central Bank of India will take into its book 80% of loans under mutually agreed terms. Ugro Capital will also service the loan account throughout the life cycle of the loan. This co-lending arrangement is expected to help both the entities to offer convenient experience to the customers as well as help expand their reach across India.
Central Bank of India reported a 55.5% jump in net profit to Rs 250.02 crore on a 3.8% decline in total income to Rs 6,503.39 crore in Q2 FY22 over Q2 FY21.
Central Bank of India is a public sector bank. The Government of India held 93.08% take in the bank as on 30 September 2021.
Shares of Central Bank of India rose 0.95% to Rs 21.20 while Ugro Capital gained 1.77% to Rs 201.55 on BSE.
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