The Central Bank of India announced a strategic co-lending relationship with Mamta Projects (MPPL) to provide borrowers with competitive micro, small, and medium enterprises (MSME) loans.
The participation of both companies in this co-lending agreement will result in the Central Bank of India and Mamta Projects expanding their portfolios.
Mamta Projects is a loan institution that focuses on technology and risk analytics. MPPL is a non-banking financial organisation authorised by the RBI. Its business verticals include MSME lending, education loans, personal loans, and anchor based financing.
Under this agreement, Mamta Projects will originate and handle MSME loan proposals in the priority sector in accordance with collaboratively developed credit parameters and eligibility requirements, and the Central Bank of India will book 80 per cent of the MSME loans in the priority sector on mutually agreed conditions. MPPL will service the loan account for the duration of the loan’s life cycle.
The Central Bank of India is a government-owned financial institution. The Indian government owns 93.08 per cent of the bank.
In Q2 FY23, the state-run lender’s net profit increased 27.26 per cent to Rs 318.17 crore on an 8.24 per cent increase in total income to Rs 7,064.96 crore compared to Q2 FY22.