Mumbai: Srei Equipment Finance Ltd (SEFL) and India’s second largest state-run lender Bank of Baroda have entered into a co-lending arrangement for infrastructure equipment, the companies said in a joint statement on Thursday. The partnership will allow Kolkata-based Srei Infrastructure Finance Ltd’s equipment finance arm and Bank of Baroda to collaborate and widen their respective customer base.
As part of the arrangement, the companies will use iQuippo, a digital marketplace for origination of loans, collection of loan dues, and auction and valuation of equipment.
Srei, owned by the Kanoria family, launched the iQuippo platform in 2016 to consolidate and digitalize the fragmented infrastructure equipment industry.
With more than 70,000 customers and over $400 million of loans disbursed through iQuippo, SEFL and Bank of Baroda will jointly offer loans and other services for construction and mining equipment, tippers, IT and allied equipment, medical and allied equipment, besides farm equipment.
Sunil Kanoria, vice-chairman, Srei, said: “Bank of Baroda has a strong track record, brand appeal and experience in customer services, which will be complemented by Srei’s knowledge, experience and strong partnerships in the equipment finance space."
“The alliance will create value for both businesses and customers, and continue our leadership position in the equipment financing business," he added. In February, SEFL had also agreed to co-lend with Syndicate Bank, under the Reserve Bank of India’s circular dated 21 September 2018, which permits banks to engage with non-banking financial companies (NBFCs) to co-lend for priority sector assets.
Srei’s equipment finance business funds the purchase of new and used equipment for construction, mining and allied equipment, which includes equipment used for earthmoving and mining, concreting, road building, material handling and processing.