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To improve the quantum of lending and to bring in operational efficiency, Syndicate Bank has partnered with infrastructure financing company SREI Equipment Finance and fintech company Atyati Technologies Private Limited.
Mrutyunjay Mahapatra, MD and CEO, Syndicate Bank, after signing MoUs with SREI Equipment Finance and Atyati Technologies, said: “The bank, with its healthy balance sheet, is set to gain from SREI Equipment Finance’s knowledge and experience of the infrastructure sector.”
“Through this tie-up, the bank is looking at providing competitive credit to the priority sector by passing the benefit of low-cost funds from the bank and lower cost of operations of NBFCs to the ultimate beneficiary through blended rate/weighted average rate,” he added.
Common lending policy
As part of the agreement, risks and rewards are proposed to be shared as mutually agreed by the bank and SREI Equipment Finance. Common lending policy and operational guidelines are proposed to be implemented under co-origination model.
In its partnership with Atyati Technologies, the bank is set to gain from the fintech’s technology platform, Ganaseva. “Here, the bank is planning to use its wide experience in the field of banking by using the tech platform for reaching out to hitherto uncovered or under-covered micro small enterprise (MSE) beneficiaries, with a thrust on women entrepreneurs (self-help groups) and to provide credit facilities of up to ₹10 lakh,” said Mahapatra.
“As per the agreement, Atyati Technologies will provide services such as identifying and sourcing MSE beneficiaries, linking them with bank, post-disbursement monitoring, and follow-up of recovery with end-to-end solution,” said Prakash Prabhu, CEO, Atyati Technologies.
Fee-based income
With the objective of maximising the fee-based income, Syndicate Bank has partnered with SBI Life on a pilot basis in three districts to offer a wide choice of insurance products to the bank’s customers. Mahapatra said: “It is proposed to have a tie-up with them on proof of concept (POC) basis for life insurance products. The bank will do POC in three districts — Bengaluru (Karnataka), Madurai (Tamil Nadu) and Kannur (Kerala) — on pilot basis before commencing insurance sales pan-India.”
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