Central Bank of India has co-loaned with Ugro Capital to offer priority sector loans to MSMEs borrowers, subject to compliance with applicable laws, including applicable RBI guidelines.
According to the bank’s press release, the participation of both companies in this joint loan arrangement will result in greater portfolio expansion through the Central Bank of India (CBI) and Ugro Capital. Ugro Capital is an RBL regulated non-bank finance company with a pan-Indian network of branches and has a good track record of customer acquisition.
Under this agreement, Ugro Capital will issue and process loans to MSME borrowers according to jointly formulated loan parameters and eligibility criteria, and the Central Bank of India will book 80% of the loans on mutually agreed terms. Ugro Capital will also look after the loan account throughout the life cycle of the loan. This joint lending agreement is expected to both help businesses deliver a convenient customer experience and expand their reach across India.
Central Bank of India reported a 55.5% increase in net income to Rs 250.02 billion while total income fell 3.8% to Rs 6,503.39 billion in the second quarter of FY22 versus the second quarter of FY21.
Central Bank of India is a public sector bank. The Indian government held 93.08% of the shares in the bank as of September 30, 2021.
Central Bank of India shares rose 0.95% to Rs 21.20 while Ugro Capital on BSE rose 1.77% to Rs 201.55.
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