Paisalo Digital gains on new co-origination loan agreement
Paisalo Digital Limited, a leading Systemically Important Non Deposit taking NBFC registered with the Reserve Bank of India, signed its co-origination loan agreement with the Bank of Maharashtra, a major public sector bank in India. The stock of Paisalo jumped nearly 4 per cent as investors reacted positively to the development.
This partnership is aimed at empowering the AGRI, MSME segment and small businesses. This is NBFC’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.
The company had stated that 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.
This partnership with a bank has been beneficial in providing easy access to credit at lower rates, given a single blended interest rate, and is expected to spur growth and help in job creation.
PAISALO 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.
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 of Maharashtra and Paisalo.
On Monday, shares of Paisalo Digital Ltd had opened in BSE at Rs.386.00 as compared to the previous close of Rs. 384.85. The stock hit an intraday high of Rs. 398.95 and intraday low of Rs. 385.00. At 13:13, the stock was trading at Rs. 393.00, up by 2.12 per cent.
Shares of Bank of Maharashtra had opened at Rs.12.20 as compared to the previous close of Rs. 12.00. The stock hit an intraday high of Rs. 12.25 and intraday low of 12.04. At 13:13, the stock was trading at Rs. 12.06, up by 0.50 per cent.