Central Bank of India and Veefin Launch Supply Chain Finance Initiative
Central Bank of India, a Mumbai-based public sector bank, has teamed up with Veefin Solutions, an Indian digital lending platform, to launch supply chain financing operations. Under the agreement, Veefin Solutions will serve as the bank's exclusive technology provider, offering a comprehensive end-to-end SCF stack to support its SCF solutions. This collaboration enables the bank to offer fully digital onboarding, sanctioning, and round-the-clock disbursement procedures to its corporate and SME customers through Veefin's Loan Origination System (LOS) and SCF Loan Management System, as per an exchange filing.
VV Natrajan, GM, Central Bank of India, said, “With SMEs contributing 30 percent to the GDP and the government aiming to increase this to 50 percent, this initiative aims to facilitate growth within this ecosystem. SCF has proven to be a form of SME lending that can help SMEs grow rapidly and thus increase their contribution to the economy”.
Veefin Solutions revealed in January a notable surge of 300% in demand for its supply chain financing solutions from financial institutions in India and globally for the ongoing fiscal year. The company highlighted collaborations with modern Non-Banking Financial Companies (NBFCs) and private sector banks like State Bank of Mauritius, Muthoot Fincorp, Aditya Birla Finance, YES Bank, IDFC FIRST Bank, as well as small finance banks including Ujjivan and AU.
Raja Debnath, Managing Director, Veefin Solutions, said, “We are delighted to add Central Bank of India to our ever-growing roster of public sector banks using our SCF solution in India. The Central Bank of India team has been very supportive through this entire process and we are confident that the bank’s leadership will be able to set new benchmarks for the bank in SCF. Most of the lenders in India in SCF use Veefin to power their business. This experience will allow the bank to rapidly launch its SCF business”.