Banking Finance January 2021, Banking News January

SBI will prefer co-origination models

SBI will prefer the co-origination model to cater to the financing needs of MSMEs and collaboration with fintechs is a good idea as it helps in assessing the risk profile of the borrower in a better manner, its chairman Dinesh Kumar Khara said. Pointing out that the Micro, Small and Medium Enterprises (MSMEs) are constrained today in terms of cash flows, time gap in realising receivables, among others and also the level of lenders’ confidence in funding them, Khara said collaborating is a better model than lending directly to MSMEs.

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