One of the oldest Indian private banks, CSB Bank collaborates with IIFL Finance (IIFL), a non-banking finance company, to offer gold loans across the nation.
CSB Bank, formerly Catholic Syrian Bank, reported a significant jump in the September quarter and a major surge was recorded in the gold loan business. IIFL would be generating more business from different sectors and act as a Business Correspondent of the bank where CSB bank presently does not have sufficient branch network.
IIFL, with its widespread branch network, would boost CSB Bank to enhance the customer base across the country including the rural areas as well.
M.D. & CEO of CSB Bank, C.V.R. Rajendran expressed that their group is striving to serve the people with the support of IIFL Finance due to its extensive branch network, latest technology and great experience in the business of gold loans.
CSB Bank has a major presence in the states like Kerala, Tamil Nadu, Karnataka, and Maharashtra with the customer base of around 1.5 million in different segments.
Chairman of IIFL Finance, Nirmal Jain stated that this partnership is a win-win situation that would merge the strengths of NBFC’s last mile connect with customers and bank’s balance sheet for boosting the financial inclusion of the underprivileged customers seeking loan on the basis of reasonable terms. CSB Bank’s institutional ownership, strong financial position and focus on governance enhances the partnership’s potential and makes it more interesting.
IIFL Finance’s asset under management (AUM) has crossed Rs 38,300 crore and has more than 2,300 branches across the country and gold loan accounts for around 25 per cent of the company’s loan AUM.