TruCap Finance said that it has entered into a partnership with Shivalik Small Finance Bank for gold loan origination under business correspondent model.
With a loan book of over Rs 500 crore, TruCap aims to build social capital by providing small ticket gold loans and business loans to its MSME borrowers.
TruCap Finance acting as business correspondent (BC) for Shivalik Small Finance Bank will originate new business and help in scaling up the customer base.
Shivalik Small Finance Bank (Shivalik SFB) is the first small finance bank in India to have transitioned from an urban cooperative bank with 24 years of experience in offering retail banking products and services.
Shivalik has recently completed maiden equity raise of over Rs 100 crore of equity capital from marquee investors including Accel, Quona Capital and Bharti AXA Life Insurance as is it aims to become the go-to bank for small businesses and retail customers. The bank's cloud-based architecture provides the bank with unmatched agility to effectively manage scale and power its growth and is live on all retail payment platforms.
Rohanjeet Singh Juneja, MD & CEO of Trucap Finance, said: "Trucap has a proven track record of working in close collaboration with reputed financial institutions to grow its asset base in a capital efficient and risk mitigated manner. Shivalik SFB is a fast-growing new age bank and all of us at Trucap are excited about the potential scale to which we can build this partnership over the next 3-5 years.
Trucap is an innovative sourcing & technology enabled financial services company that aims to provide credit solutions to India's large underbanked and under served micro small businesses and consumers. The company has over 70 branches across the states of Maharashtra, Madhya Pradesh, Delhi NCR, Rajasthan, Gujarat, Goa, and UP.
The company's consolidated net profit declined 84.83% to Rs 0.27 crore in the quarter ended September 2022 as against Rs 1.78 crore during the previous quarter ended September 2021. Total income increased by 72.04% to Rs 30.38 crore in Q2 FY23 from Rs 17.66 crore in Q2 FY22.
The scrip rose 0.23% to currently trade at Rs 65.90 on the BSE.
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