Mumbai-based public sector bank Central Bank of India has partnered with Veefin Solutions, India’s digital lending platform, to commence supply chain financing (SCF) operations.
Veefin Solutions will be the bank’s sole technology vendor, supplying an end-to-end SCF stack to support its SCF solutions. This agreement will allow the bank to provide entirely digital onboarding, sanctioning, and 24×7 disbursement procedures to its corporate and SME customers via Veefin’s Loan Origination System (LOS) and SCF Loan Management System, according to an exchange filing.
VV Natrajan, GM, Central Bank of India, said, “With SMEs contributing 30 per cent to the GDP and the government aiming to increase this to 50 per cent, this initiative aims to facilitate growth within this ecosystem. SCF has proven to be a form of SME lending that can help SMEs grow rapidly and thus increase their contribution to the economy.”
In January, Veefin Solutions announced a significant 300% increase in demand for its supply chain financing solutions from Indian and worldwide financial institutions for the current fiscal year. The company stated that Veefin has worked with new-age Non-Banking Financial Companies (NBFCs), as well as private sector banks such as State Bank of Mauritius, Muthoot Fincorp, Aditya Birla Finance, YES Bank, IDFC FIRST Bank, and small finance banks such as Ujjivan and AU.
Raja Debnath, Managing Director, Veefin Solutions, said, “We are delighted to add Central Bank of India to our ever growing roster of public sector banks using our SCF solution in India. The Central Bank of India team has been very supportive through this entire process and we are confident that the bank’s leadership will be able to set new benchmarks for the bank in SCF. Most of the lenders in India in SCF use Veefin to power their business. This experience will allow the bank to rapidly launch its SCF business.”
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