Satin Creditcare Network witnessed an initial 5 percent surge in its shares on December 29, fueled by the announcement of a strategic collaboration with Karnataka Bank for co-lending loans to microfinance borrowers. However, the shares later retraced their gains and traded in the red.
Under the newly established master agreement, Satin Creditcare Network and Karnataka Bank will engage in a co-lending module, disbursing loans to microfinance borrowers in tranches. The microfinance institution will serve as the service provider, overseeing collections and monitoring activities. Notably, the funds’ distribution ratio is set at 80:20, with Karnataka Bank contributing the larger share of the funding.
This collaboration aligns with the regulatory framework, staying within the limits defined by the Reserve Bank of India (RBI) and its guidelines for lending to the priority sector. As of the time of publication, the shares were trading at ₹240.35, reflecting the market’s response to this dynamic development.
