IIFL Finance Ltd. announced on Tuesday that it had partnered with Catholic Syrian Bank (CSB Bank) for gold loan co-origination, sourcing and managing.
The Thane based company stated in its BSE regulatory filing. “IIFL, acting as Business Correspondent (BC) of the Bank, will source new business from markets where CSB Bank does not have adequate branch network. IIFL, with its vast branch network, would help CSB Bank penetrate the lower strata of customers and rural areas, where the Bank currently does not have adequate reach. This arrangement would result in scaling up of the customer base.”
Mr. C.VR. Rajendran, Managing Director & CEO, CSB Bank said, “CSB Bank endeavours to serve individuals who are either under-banked or un-banked. Gold loan is the core business driver for the Bank. IIFL Finance with its extensive branch network, robust technology and more than a decade’s experience in Gold Loan business, is the ideal long term partner, to help the Bank penetrate the under-served segments of the customers in under covered geographies of the country.”
Mr. Nirmal Jain, Chairman of IIFL Finance said, “This is a win-win partnership, which combines the strengths of the Bank’s balance sheet and NBFC’s last mile connect with the customers, to help financial inclusion of the under privileged customers in need of credit on reasonable terms. CSB Bank’s strong financial position, institutional ownership and focus on governance, makes us excited about the partnership’s potential.”
“CSB Bank is one of the oldest private sector banks in India, with its strong presence in Kerala, Tamil Nadu, Karnataka, and Maharashtra through 432 branches and an overall customer base of 1.5 million in SME, retail, and NRI segments. Recently, the bank reported a three-fold surge in profit for the
quarter ended September 30, helped by a surge in gold loan business, where assets grew 47%.”
The pandemic created various operational and financial challenges for businesses. But with the help of Guaranteed Emergency Credit Line Scheme (#GECL) & #IIFLFinance, a line of credit was issued for sustenance & growth of the business. #Testimonials #AtmaNirbharBharat pic.twitter.com/UfQ8Rjjh64
— IIFL Finance (@IIFL_Finance) October 21, 2020
