Yes Bank and Indiabulls Housing Finance have entered into a co-lending agreement for home loans.

“The partnership aims at synergising capabilities to provide an efficient and seamless experience to retail home loan customers,” said a joint statement on Wednesday, adding that the Reserve Bank of India’s co-lending framework provides a collaboration tool to benefit from the low-cost funding model of a bank and the cost-efficient sourcing and servicing capabilities of a non-bank.

Rajan Pental, Global Head, Retail Banking, Yes Bank said, “The partnership is in line with Yes Bank’s strategy of expanding its retail franchise through a mix of organic and partnership-led origination models. The bank is looking forward to further build a profitable and quality home loan portfolio through this partnership.”

Home loans constitute about 10 per cent of Yes Bank’s retail banking assets as on June 30, 2021.

Gagan Banga, Vice Chairman and CEO, Indiabulls Housing Finance said, “We can now leverage Yes Bank’s deposit-led franchise and complement that with our technology-led distribution to provide efficient solutions around home loans to a wide gamut of customers across geographies, ticket-sizes and yield spectrum, to give us balance-sheet light growth and profitability.”

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