Bank of Baroda (BOB or BoB) is a Vadodara-based Indian nationalized banking and financial services firm. With 132 million customers, a total revenue of $218 billion, and 100 international offices, it is India’s fourth nationalized bank.
According to Forbes Global 2000 data from 2019, it is ranked 1145. The bank was created on July 20, 1908, in the Princely State of Baroda, Gujarat, by Sayajirao Gaekwad III, Maharaja of Baroda. On July 19, 1969, the Indian government nationalized the bank and 13 other large commercial banks, designating it as a profit-making public sector operation (PSU).
Bank of Baroda, a public sector bank, announced the establishment of an end-to-end digital platform on Monday to promote co-lending of loans with NBFCs. To improve, speed, and simplify the co-lending process, the platform will allow seamless connection between the Bank and numerous NBFC partners.
The platform employs rule-based algorithms for underwriting, enables credit assessment checks, enables Retail, MSME, and Agri co-lending product offerings, and improves process efficiency, according to the business. According to the current RBI guidelines on the co-lending model, the digital co-lending platform has state-of-the-art capabilities to handle both the non-discretionary and discretionary models of co-lending for secured and unsecured products.
”The Digital Co-Lending Platform will enable Bank of Baroda and our NBFC partners to seamlessly integrate and facilitate lending to borrowers with improved TAT,” according to Bank of Baroda. said Bank of Baroda Executive Director Vikramaditya Singh Khichi. Co-lending is a priority for the Bank, and we believe that this cutting-edge platform will assist us in reaching significant milestones in the coming years. In the next two years, the bank hopes to partner with at least ten NBFCs and build a Rs.10,000 crore co-lending loan book through its digital platform.”
“The Digital Co-Lending Platform is an agile tech-driven multi-dimensional solution that provides an end-to-end solution for the complicated accounting difficulties that are typical in co-lending,” said Akhil Handa, Chief Digital Officer, Bank of Baroda.
The platform’s unique and best-in-class features, such as dedicated escrow management and collections mechanisms, enable a more efficient loan management cycle.” Co-lending benefits all three parties involved: clients, partners, and the bank. It enables banks to reach out to new client segments and enhance loan flow by providing last mile connection. It allows NBFCs to take advantage of the bank’s reduced funding costs while offering consumers lower-cost loans.
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