Arka Fincap Partners With Central Bank Of India For MSME Lending
Updated: Jul 18, 2024 02:29:18pm
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New Delhi, Jul 18 (KNN) Arka Fincap, a non-bank financial company and subsidiary of Kirloskar Group, has announced a strategic partnership with Central Bank of India to provide loans to Micro, Small, and Medium Enterprises (MSMEs).
The collaboration, formalised on Wednesday, aims to offer competitive financing options to the MSME sector while expanding Arka Fincap's reach across India.
Under the co-lending arrangement, Arka Fincap will be responsible for originating and processing loan proposals for MSMEs, adhering to jointly established credit parameters and eligibility criteria.
Central Bank of India will take on 80 per cent of the loans, with Arka Fincap managing the accounts throughout their lifecycle.
Amit Kumar Gupta, Group Chief Financial Officer, Arka Fincap, stated that the partnership aligns with the company's strategy to expand its retail lending portfolio and explore new growth opportunities in India's evolving MSME sector.
Navin Saini, Chief Business Officer For Retail & MSME, Arka Fincap, emphasised that this collaboration is a significant step towards addressing the credit gap for MSMEs and solidifying the company's position as a preferred NBFC in the business loan segment.
Arka Fincap, which operates in MSME & SME lending, corporate lending, real estate, and urban infrastructure financing, reported an Assets Under Management (AUM) of Rs 5,200 crore as of March 31, 2024. The company currently has 31 branches across 13 states, with retail AUM accounting for 50 per cent of its total portfolio.
Looking ahead, Arka Fincap has set ambitious growth targets. The company aims to increase its book value to Rs 7,500 crore for the fiscal year 2025, with Rs 5,000 crore expected to come from MSME lending.
The lender plans to have MSME loans constitute 75 per cent of its portfolio and expand its presence to 45 branches.
To further strengthen its market position, Arka Fincap is planning a significant expansion of its branch network.
The company intends to increase its current 32 branches to 60 by the end of the fiscal year, underscoring its commitment to enhancing accessibility and gaining market share in the competitive MSME lending sector.
(KNN Bureau)