Bank of India set up a specialised branch at Nariman Point in Mumbai to strengthen its partnership-led lending ecosystem, with a mandate covering pool buyouts, co-lending, TReDS and supply chain finance.
BRANCH FOCUS
The Strategic Business Branch, inaugurated on 8 June, will function as a specialised hub to consolidate and scale up the bank's digital and partnership-led financing businesses. The branch will handle pool buyouts, co-lending, TReDS (Trade Receivables Discounting System) and supply chain finance, the bank said.
Pool buyouts refer to transactions in which a bank purchases a portfolio of loans or receivables originated by other lenders, while co-lending typically involves a formal arrangement between a bank and a non-bank lender to share credit exposure on individual loans. TReDS is a marketplace for discounting trade receivables that connects buyers, sellers and financiers. Supply chain finance covers arrangements that accelerate supplier payments through financial intermediation, often coordinated with corporate buyers.
STRATEGIC CONTEXT
Bringing these businesses under one roof at the Strategic Business Branch "will improve operational efficiencies, credit monitoring and agility in underwriting, while ensuring a clear focus on these four business verticals," MD and CEO Rajneesh Karnatak said.
The bank said the branch will serve as a centre of excellence for partnership-led financing, supporting its strategy of sustainable business growth while maintaining robust governance and risk controls.
Karnatak inaugurated the branch in the presence of Executive Director P R Rajagopal and other senior executives.
MANAGEMENT COMMENT
"By bringing these strategic business segments under a dedicated branch, we aim to enhance scalability, portfolio monitoring and operational efficiency while supporting the evolving financing requirements of the corporates," said Ravi Shankar, General Manager, Digital Lending Department.
Sources: Business Standard; The Hindu BusinessLine
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