Paisalo Digital Limited, is a leading Systemically Important Non Deposit taking NBFC registered with the Reserve Bank of India, in operations since 1992. With a vision of empowering the AGRI, MSME segment and small businesses, PAISALO, on September 20, 2019 signed its co-origination loan agreement with the Bank of Maharashtra, a major public sector bank in India. This is Company's second Co-origination Agreement with any Bank, before Bank of Maharashtra, PAISALO has already signed a co-origination loan agreement with State Bank of India in April, 2019.
Pursuant to Reserve Bank of India's (RBI) guidelines on co-origination of loans by banks and NBFCs, the agreement aims to combine efforts to reach unsevered last mile borrowers and to ensure timely disbursal of credit.
The co-origination arrangement will entail joint contribution of credit by the Bank and PAISALO,It shall also involve "sharing of risks and rewards between Bank and PAISALO".
This agreement is as per notification issued by the Reserve Bank of India on September 21, 2018 for Co-origination of loans by Banks and NBFCs for lending to priority sector and will support Modi Government's financial inclusion plan.
PAISALO has AUM of over INR 2,000 Crore with a net worth of INR 725.16 Crore and a CAR of 37.18% as on Q1 FY20. It has serviced nearly 10,25,000 borrowers and has over 2,65,000 live borrowers. The company serves customers with 116 branches in rural areas, serviced by a team of persons over 1500, with business operations in Uttar Pradesh, Maharashtra, Himachal Pradesh, Gujarat, Rajasthan, Delhi, Haryana, Punjab, Uttarakhand and Bihar.
Commenting on the initiative, Mr. Sunil Agarwal, Managing Director and CEO at PAISALO said, "We at PAISALO have always believed in our mission of conducting business with a social conscience and we intend to continue this thought throughout our journey. We are delighted to associate with Bank of Maharashtra as their co-lending partner, and are thankful to the Bank for their trust."
He added, in India where approx 62% of the population is living in the rural areas, we have the opportunity to serve them with this co-origination arrangement with Bank. This Paisalo's arrangement with Bank benefited the priority sector borrowers by way of easy access to credit at lower rates, given a single blended interest rate, and with this we are aiming for partnering with the people in the growth journey of their business and help them contribute to maximum job creation.
Santanu Agarwal, Chief Innovation Officer at PAISALO said, "We at PAISALO, acknowledge the constructive disruption technology has brought in the lending space, a strong technology backbone and foundation is now a solvency factor rather than a standout. PAISALO uses technology as a stepping stone to evolve and grow business effectively and efficiently. With PAISALO focusing on ease and customer centric growth using technology and digitization becoming the new competitive edge factor, our focus has been to digitally transform the business of PAISALO as well as provide a technological solution so simple, effective and efficient that it makes the customer experience unique, robust and trustworthy. Over the last two years several initiatives have been undertaken to implement robust, scalable and trustworthy technological architecture. These initiatives will drive PAISALO efficiencies and provide a seamless and easy experience to the borrowers and fulfill our aim to be AVAILABLE - AWARE - AFFORDABLE."
Shares of Paisalo Digital Ltd was last trading in BSE at Rs.385 as compared to the previous close of Rs. 382.85. The total number of shares traded during the day was 69845 in over 309 trades.
The stock hit an intraday high of Rs. 390 and intraday low of 370. The net turnover during the day was Rs. 26973288.
Shares of BANK OF MAHARASHTRA was last trading in BSE at Rs.12 as compared to the previous close of Rs. 11.88. The total number of shares traded during the day was 174852 in over 375 trades.
The stock hit an intraday high of Rs. 12.25 and intraday low of 11.91. The net turnover during the day was Rs. 2103410.