Bank of India inks pact with MAS Financial Services for co-lending

State-owned lender Bank of India (BOI) has entered into a co-lending pact with MAS Financial Services for MSME loans, it said Tuesday.

The public sector lender will leverage the reach of NBFC to build an MSME portfolio, Atanu Kumar Das, Managing Director & CEO, Bank of India said in a release.

The bank announced the tie-up on the occasion of its 116th foundation day.

On the occasion, the bank unveiled various new schemes for farmers and undertook several initiatives, such as tree plantation, extending financial help to 8,718 girl children towards their education and customer outreach programmes, among others. The bank celebrated ‘Azadi Ka Amrit Mahotsav’ to mark the special occasion.

With a view to increase the credit flow to the unserved and underserved sector by leveraging NBFCs, the Reserve Bank of India (RBI) had introduced co-lending. Under scheme the banks can provide loans along with NBFCs to priority sector borrowers based on a prior agreement. The co-lending model seeks to provide greater flexibility to the lending institutions. Under the arrangement, banks will be allowed to co-lend with all registered NBFCs based on a prior agreement.