Karnataka Bank, Satin Creditcare ink co-lending agreement

Mangaluru: The city-headquartered Karnataka Bank and Satin Creditcare Network Limited(SCNL), a leading NBFC micro-finance Institution have entered into a co-lending arrangement to provide financial support to joint liability groups of women in rural and semi-urban areas, a bank release here said on Friday.

The arrangement is to encourage economically active women by providing impetus to the micro-credit facilities segment in the country. This is in line with the Reserve Bank of India's guidelines on co-lending by banks and NBFCs to priority sectors to improve the flow of credit to underserved segments. It will leverage Karnataka Bank's low cost of funds and end-to-end digital capabilities of Satin through Yubi platform for co-lending, to help the sourcing, servicing and recovery of small-ticket income generation priority sector loans.

The bank's CEO and Managing Director, H Shrikrishnan, said in the release that the arrangement with Satin will improve the bank's micro credit facilities in rural and semi-urban areas. Digital co-lending partnerships covering multiple credit areas will be pursued by the bank to create a sustainable focus on economic empowerment, he said. SCNL chairman and MD H P Singh said by combining the strengths of the NBFC and the bank, the agreement aims to uplift women entrepreneurs in rural and semi-urban India, thereby enhancing sustainable economic growth. The agreement was exchanged by bank Shrikrishnan and Singh in Bengaluru, the release said.