The said loans would be subject to compliance with the applicable laws including the applicable guidelines issued by Reserve Bank of India (RBI).

The participation by both the entities in this co-lending arrangement will result in greater expansion of portfolio by Central Bank of India and Kisetsu Saison Finance.

Kisetsu Saison Finance (India) is an NBFC registered with the RBI. The NBFC is engaged in the business of financing loans to individuals, MSMEs and body corporates in India. The company is headquartered in Bengaluru and the network of branches across India enables it to source and service clients across 40 locations in 18 states/union territories. The AUM of the company as on 30 September 2023 was more than Rs 8,200 crore.

“Under the arrangement, Kisetsu Saison Finance (India) will originate and process loan proposals under MSME sector as per jointly formulated credit parameters and eligibility criteria and Central Bank of India will take into its books 80% of the MSME Loans under mutually agreed terms. Kisetsu Saison Finance (India) will service the loan account throughout the life cycle of the loan,” the bank stated in the press release.

Central Bank of India is engaged in providing banking and financial services with wide range of products and services to individuals, commercial enterprises, large corporates, public bodies and institutional customers. Bank is having pan India presence with network of 4489 branches with 65.22 % (2928 branches) in rural & semi-urban areas, 4044 ATMs and 10962 BC Points with total 19495 Touch Points as on September 2023.

The bank’s net profit jumped 90.25% to Rs 605 crore on 19.07% increase in total income to Rs 8,412 crore in Q2 FY24 over Q2 FY23.