Mahindra & Mahindra Financial Services Ltd. and the State Bank of India (SBI) have launched a strategic alliance to introduce a co-lending model across India. The initiative, announced today, is designed to leverage the distribution strength of non-bank financial companies (NBFCs) and the capital efficiency of banks to offer affordable solutions with improved interest rates. The rates will be determined by individual credit profiles for personalized financing.
The partnership was unveiled by Ramesh Iyer, along with the Deputy Managing Director of SBI and the Chief General Manager (SME) from SBI. Mahindra Finance will handle customer interactions and loan servicing under this agreement, which primarily targets priority sector lending. The firm continues its focus on the MSME sector in rural and semi-urban areas.
Raul Rebello, MD & CEO-Designate of Mahindra Finance, sees this as a significant move towards enhancing financial accessibility. "This strategic alliance harnesses the complementary strengths of both institutions," said Rebello.
In related news, Mahindra Rural Housing Finance Ltd., a subsidiary of Mahindra & Mahindra Financial Services Ltd., is also shifting towards more affordable financing options.
Despite a 48% fall in Q2 net profit to Rs 235.2 crore for Mahindra & Mahindra Financial Services Ltd., shares of both companies traded higher today at Rs 247.90 and Rs 567.70 apiece, surpassing the NSE Nifty 50.
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