Karur Vysya Bank, a private sector bank, and Cholamandalam Investment and Finance Company Limited (Chola), the financial services arm of the Murugappa Group, jointly announced that they have launched Co-lending business in partnership.
Karur Vysya Bank (KVB) incorporated in 1916, has 780 branches spread across 21 States with over 7 million customers. KVB’s primary objective is to meet the financial needs of its customers across all sections of society. Under the Co-lending space, KVB has formed partnership with several Fintech and NBFCs to enhance last-mile connectivity.
“The co-lending model is a great opportunity for banks and NBFCs to draw upon each other’s strengths. Co-lending business will significantly help Chola and Karur Vysya Bank to expand their reach to new customer segments across the country where Chola has a stronger presence to target high value loan segments such as construction equipment and Commercial vehicles,” the announcement said.
Sharing his thoughts on the same, Mr. Ravindra Kundu (Executive Director, Cholamandalam Investment and Finance Company Limited), said, “Our mission at Chola is to enable our customers enter a better life and we continue to innovate to deliver this. We strongly believe our co-lending partnership with KVB will help us garner market share across segments of customers due to our stronger presence throughout the country. Co-lending is a new direction for Chola but we are confident that this will soon evolve into a very fruitful partnership model for KVB and Chola.
Mr. Natarajan J (President and Chief Operating Officer, Karur Vysya Bank ), said, “Chola enjoys a unique position in the industry today due to its strong customer relationship built over four decades and reliance on an inherent value system. The partnership will help the Bank expand its commercial customer base and also provide upselling and cross selling opportunities.”
Chola operates from 1135 branches across India with assets under management above INR 75,000 Crores.
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.