Dhanvarsha Finvest Limited inks Co-Lending Partnership to offer Gold Loans with Central Bank of India

Dhanvarsha Finvest Limited on August 7th announced a substantial Co-lending partnership with Central Bank of India (CBOI) for providing hassle free customized lending to micro, small and medium enterprises (MSME) Gold loan customers. Under this Co-lending partnership, Dhanvarsha has agreed to scale up the business up to Rs. 10 billion with Central Bank of India which is a significant milestone for the company and will materially bolster its AUM, capital efficiency, and vision of catering to the financial needs of MSMEs through affordable, timely and sustainable credit solutions.

With a mission to empower underbanked and underserved MSMEs who Dhanvarsha considers to be the backbone of the Indian economy, this partnership with Central Bank of India will go a long way in providing much needed credit to good MSME borrowers, in turn augmenting the economy. A wide range of MSMEs including recently added wholesale and retail traders under priority sector can avail credit through this partnership.

Mr. Rohanjeet Singh Juneja and Mr. Karan Desai, Joint Managing Directors at Dhanvarsha said, 'Dhanvarsha was formed with a vision to empower with financial access the unserved and underserved entrepreneurs of India. There is tremendous demand for credit in the MSME segment which is still relatively unaddressed in India's financial ecosystem. Dhanvarsha, a tech enabled finance company with a strong credit and origination engine, is proud to partner with Central Bank of India, one of the largest Public Sector Banks in India, to support the Government's mission in providing capital and much needed confidence to the MSME sector. In this partnership, Dhanvarsha will originate, service and collect on MSME gold loans under a joint credit and eligibility policy decided between the two entities. Central Bank of India will take 80% of these loans in its own books while Dhanvarsha will retain 20%. This will enhance capital efficiency for Dhanvarsha, and we are confident that our efforts together with Central Bank of India in this Co-lending partnership will go a long way in scaling AUM significantly for both entities in the MSME space.

Dhanvarsha has achieved substantial scale in the last 15 months on the liability side of the balance sheet with capital infusion of over Rs. 1.25 billion despite the global pandemic. It has added 11 lenders including the likes of HDFC, State Bank of India, NABARD, Central Bank of India, Northern Arc, Bank of India, AK Capital, MAS Financial, Citrus Global Arbitrage Fund, Calypso Global Investment Fund, and Fourdegree Capital. Furthermore, it has grown its loan book by over Rs. 1.2 billion with an addition of over 14,000 customers in this time frame showcasing exceptional granularity in customer addition.

Dhanvarsha has a rapidly expanding network of more than 300 financial inclusion stores, 25 experiential centers and 125 partner branches. Under this Co-lending partnership with Central Bank of India, the Company has recently opened its first experiential center in Indore, Madhya Pradesh and plans to add substantial scale in Madhya Pradesh through the rest of FY22 and FY23.

Shares of Dhanvarsha Finvest Limited was last trading in BSE at Rs. 745 as compared to the previous close of Rs. 739.7. The total number of shares traded during the day was 73369 in over 395 trades.

The stock hit an intraday high of Rs. 778 and intraday low of 732. The net turnover during the day was Rs. 54537484.

Shares of Central Bank of India was last trading in BSE at Rs. 21.35 as compared to the previous close of Rs. 21.95. The total number of shares traded during the day was 1268201 in over 3517 trades.

The stock hit an intraday high of Rs. 22.45 and intraday low of 21.2. The net turnover during the day was Rs. 27401394.

Source : Equity Bulls

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