SBI in talks with NBFCs on co-origination of loans

By: |
Updated: August 21, 2019 6:56:29 AM

The central bank had released guidelines on co-origination of loans by banks and NBFCs to the priority sector last year with a view to leveraging on the reach of NBFCs to help banks meet their priority sector lending targets.

SBI, State Bank of India, SBI Life, SBI Life MD, Arijit Basu, NBFC, SBISBI Life MD Arijit Basu

State Bank of India (SBI) is currently in talks with at least 4-5 non-banking financial companies on co-origination of loans, managing director Arijit Basu said on Tuesday. This co-origination could be for home loans or loans to small and medium enterprises, he added.

The central bank had released guidelines on co-origination of loans by banks and NBFCs to the priority sector last year with a view to leveraging on the reach of NBFCs to help banks meet their priority sector lending targets. Co-lending also helps leverage on banks’ access to low cost funds.

The bank has already done at least one deal with an NBFC and would like to explore further opportunities on this front, Basu said. “Size is not very large. We have gone on to a platform with one company as of now. It’s a pool of asset primarily linked to the SME sector,” Basu added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Link bulk deposits to repo for effective transmission of interest rates: SBI report
2Easy loans: Banks to sanction retail loans through portal
3Govt, RBI done all that they could for NBFCs: SBI chief Rajnish Kumar