Central Bank of India taps Veefin to automate its supply chain finance operations

Mumbai-based public sector bank Central Bank of India on Tuesday announced a partnership with a digital lending platform Veefin Solutions to launch its supply chain financing (SCF) operations.

Veefin Solutions will serve as the sole technology vendor for the bank, providing an end-to-end SCF stack to support the bank’s SCF offerings. This collaboration will enable the bank to offer fully digital onboarding, sanctioning, and 24x7 disbursement processes to their corporate and SME customers through Veefin’s Loan Origination System (LOS) and SCF Loan Management System, the company said in an exchange filing.

“With SMEs contributing 30% to the GDP and the government aiming to increase this to 50%, this initiative aims to facilitate growth within this ecosystem. SCF has proven to be a form of SME lending that can help SMEs grow rapidly and thus increase their contribution to the economy,” VV Natrajan, GM of the Central Bank of India, said in a statement, 

Veefin Solutions in January reported a substantial 300% surge in demand for its supply chain finance solutions from both Indian and global financial institutions in the current fiscal year. The company highlighted that new-age Non-Banking Financial Companies (NBFCs), along with private sector banks such as State Bank of Mauritius, Muthoot Fincorp, Aditya Birla Finance, YES Bank, IDFC FIRST Bank, and small finance banks like Ujjivan and AU, have partnered with Veefin.

Raja Debnath, Managing Director, Veefin Solutions, said, “We are delighted to add Central Bank of India to our ever-growing roster of public sector banks using our SCF solution in India. The Central Bank of India team has been very supportive through this entire process and we are confident that the bank’s leadership will be able to set new benchmarks for the bank in SCF. Most of the lenders in India in SCF use Veefin to power their business. This experience will allow the bank to rapidly launch its SCF business.”

In addition to supply chain finance, Veefin's platform offers a range of MSME loan products, encompassing term loans, overdrafts, loans against property, collateral-based loans, and Mudra loans.