IndusInd Bank has inked a pact with the Asian Development Bank for a partial guarantee programme with an initial outlay of Rs 560 crore for supply chain financing.
The bank has entered into a partial guarantee programme with ADB with an initial outlay of $70 million (Rs 560 crore), exclusively towards promoting supply chain finance solutions in India, IndusInd Bank said in a release on Friday.
ADB provides partial credit guarantees to lenders. It covers non-payment by the borrower on the guaranteed portion of the principal and interest due.
Aimed to grow its presence in MSME financing, the private sector lender sees this partnership to further strengthen various initiatives taken by it in this area.
"With SCF (supply chain finance) being a focus area, the bank has initiated a host of strategic efforts, including the launch of new product structures for SCF," it said.
Also, it recently launched a digital portal for SCF, earlyCredit, enabling 24x7 seamless processing of SCF transactions for corporates, suppliers and dealers.
"At IndusInd Bank, 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/suppliers, thereby being a true partner in their growth trajectory," Amitabh Saraff, Head - Financial Services, SME Business & SCF, said.
Partnership with a global organisation like ADB strengthens the bank's SCF platform.
This association will further open up opportunities for the Bank to innovate and empower the bank clients with the best financing solution, the official said.
