A partnership between a Bank and a Non-Banking Financial Company (NBFC) is becoming more and more common by the day as the financial sector of the country struggles to keep its head above water.
Jumping on a similar bandwagon the private sector Bank, CSB Bank and the NBFC, IIFL Finance have decided to combine efforts in reaching out the benefits of Gold Loan schemes to a vast and untapped sector living in remote and rural locations of the country.
The Partnership to offer Gold Loans
Under the partnership, IIFL will be acting as the business correspondent for CSB Bank and will be sourcing new business from markets where CSB Bank does not have the necessary infrastructure or network to do so.
This partnership would help CSB Bank penetrate the lower strata of customers and rural areas where CSB Bank does not have much reach but IIFL Finance has a vast underlying network and connect.
“CSB Bank endeavors 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…to help the bank penetrate the under-served segments of the customers in under covered geographies of the country,” said CVR Rajendran, Managing Director & CEO of CSB Bank.
“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,” said Nirmal Jain, Chairman of IIFL Finance.
Both look extremely optimistic for the upcoming partnership. CSB Bank is one of the oldest private sector banks and have an overwhelming presence in the Southern Part of the nation with a total of approximate 432 branches. The asset under management (AUM) of IIFL Finance is over Rs 38,300 crore and it has over 2,300 branches across India, catering to about 40 lakh customers. Gold loan accounts for about 25 per cent of IIFL’s loan AUM.