ECL Finance Limited, a subsidiary of Edelweiss Financial Services Limited and flagship NBFC of Edelweiss Group and Bank of Baroda, India’s second largest public sector bank, signed an agreement to form a strategic partnership to exploreCo-lending/Co-Origination opportunities. With this partnership, ECL Finance Limitedand Bank of Baroda will jointly offer loans and expertise for the growing needs of MSME and self-employed as well as priority sector groups.
Under the arrangement, bothpartnerscan widen their respective markets and offer timely delivery of credit to customers at a significantly lower cost.
Speaking on the development, Rashesh Shah, Chairman & CEO of Edelweiss Groupsaid, “We are delighted to be partnering with Bank ofBaroda in this excellent initiative by Shri P Jayakumar, MD. Bank of Baroda, in increasing the reach of credit to servicethe needs of a large section of India. I do believe that this model of partnership between banks and NBFCs is here to stay, truly democratising access to credit.”
Speaking onthe announcement,Vikramaditya Singh Khichi, Executive Director, Bank of Barodasaid, “The SME sector is the backbone of the Indian economy, providing millions of jobs, and contributing a significant chunk to industrial growth and the country’s exports. There is huge potential that is untapped in the SME space. Co-lending partnerships between large organisations like Bank of Baroda
2and leading players in finance like Edelweiss will contribute to the overall enhancement of the SME industry, as these enterprises need funding for adopting new technology that will enhance their growth andin turn boost India’s economic growth.”
Deepak Mittal, MD & CEO, ECL Financeadded, “With this alliance, we expect to create a win-win situation for all three stakeholders –our customers, Bank of Baroda and Edelweiss. This partnership will help Edelweiss keep the needs of our customers foremost and provide them with affordable and timely credit while our proven ability in origination,credit assessment and monitoring asset quality will enhance the portfolio. We believe best use of technology will enable widereach and enhance servicing capability to this underserved and socio economically important customer segment.
”The Credit business has been a significant growth engine for the Edelweiss Group with the retail credit segment having grown to 50% of the total book at over INR 18000 crore at the end of FY19. The business has both size and scalability with a growing presence pan India.
The overall Credit business has remained resilient amidst tough market conditions due to the sheer strength of its diversified business model, robust risk mitigation and credit assessment as well as superior asset quality and low NPA levels. In recent months, the Edelweiss Group has cemented several partnerships with marquee global institutions including Caisse de dépôt et placement du Québec (one of North America’s largest pension funds), Allianz Investment Management (part of Allianz Group, one of the world’s largest insurers) and Bank of Singapore across market leading platforms in its NBFC ECL Finance, Private Debt and Wealth Management business.
Recently, US-based Arthur J. Gallagher & Co. (one of the world’s largest insurance brokerage firms) also announced that it will be acquiring a minority stake in Edelweiss Insurance Brokers Limited (EIBL).
About Edelweiss Group
The Edelweiss Group is one of India’s leading diversified financial services company providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals. Edelweiss’s products and services span multiple asset classes and consumer segments across domestic and global geographies. Its businesses are broadly divided into Credit Business (Retail Creditcomprises of Retail Mortgages, SME andBusiness Loans,ESOP and Margin Financing, Agri andRural Finance,Corporate Creditcomprises ofStructured Collateralised Creditto Corporates and Wholesale Mortgages, and Distressed Credit),Advisory Business (Wealth Management, Asset Management and Capital Markets) andInsurance (Life andGeneral Insurance). Edelweiss has a Balance Sheet of INR 53,932cr, as of 31stMarch, 2019. The Group had a revenue of INR 10,886 crandPAT of INR 995crfor FY19.To learn more about the Edelweiss Group, please visit www.edelweissfin.com
About Bank of Baroda
Bank of Baroda (“The Bank”) established on July 20, 1908 is a State-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.Bank of Baroda is India’s third largest bank with a strong domestic presence supported by self-service channels. The Bank’s distribution network includes 9,500+ branches, 13,400+ ATMs and 1,200+ self-service e-lobbies. The Bank has a significant international presence with a network of 100 branches/offices of subsidiaries, spanning 21 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and BOB Asset Management Co. Ltd. Bank of Baroda also has joint-venture for life insurance viz. India First Life Insurance. TheBank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank