Credit and Finance for MSMEs: Private sector bank IndusInd Bank has announced its partnership with Asian Development Bank (ADB), a regional development bank catering to Asia and Pacific region, to create a partial guarantee programme to encourage supply chain finance solutions in India.
The initiative will have an initial outlay of $70 million (Rs 560 crore), said IndusInd Bank in a statement.
With the collaboration, the bank is looking forward to expand its MSME portfolio and strengthen its existing strategies for the sector.
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IndusInd already has a few product structures for SCF and a digital portal called ‘earlyCredit’ to enable supply chain financing for corporates, suppliers and dealers.
Amitabh Saraff, head of financial services, SME Business and SCF, said the partnership would strengthen their SCF platform and provide scope for innovation. “We look forward to funding the entire ecosystem of a corporate entity by offering holistic SCF solutions, meeting end-to-end requirements of both corporate and their dealers or suppliers thereby being a true partner in their growth trajectory,” he said.
The bank’s SCF platform caters to all sectors across industries including automobile, steel, fast-moving consumer goods (FMCG), white goods, amongst others. According to the bank, they facilitate the suppliers and vendors with timely availability of funds, channel finance for the purchases of the dealers associated with corporates and provide structured finance solutions for corporates to manage their cash flows.
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