The alliance will focus on co-lending and partnership lending activities, as well as facilitate seamless loan transfers between banks and originators.
FinTech BizNews Service
Mumbai, May 8, 2024: South Indian Bank has entered into an alliance with Northern Arc Capital. This association has been formalized through the signing of a Memorandum of Understanding (MOU) underscoring the commitment of both institutions to a mutually beneficial partnership. The partnership is aimed at exploring and maximizing business opportunities through combined efforts in the areas of loan origination, underwriting, disbursement, collection, and reconciliation processes. The alliance will focus on co-lending and partnership lending activities, as well as facilitate seamless loan transfers between banks and originators.
The partnership signifies a shared commitment to harnessing synergies, expertise, and resources to enhance the efficiency and effectiveness of lending operations. By joining forces, South Indian Bank and Northern Arc Capital aims to capitalize on emerging market trends, diversify their portfolios, and provide innovative financial solutions to a broader customer base. The partnership will enable South Indian Bank to leverage nPOS, Northern Arc’s proprietary technology platform for co-origination, co-lending and pool buyouts, and to seamlessly connect with multiple originators for loan origination, underwriting, disbursement, and reconciliation abilities.
Mr. P R Seshadri, MD and CEO, South Indian Bank said, "This alliance with Northern Arc Capital serves as a compelling testament to our unwavering commitment to innovation and sustained growth. As we unite our respective strengths, our collective aim is to forge a formidable presence in the financial sector. This collaboration is poised not only to drive enhanced value for our customers but also to create tangible benefits for our stakeholders. By leveraging the synergies inherent in this alliance, we look forward to pioneering innovative solutions and setting new benchmarks within the dynamic landscape of the financial industry."
Mr. Ashish Mehrotra, MD & CEO, Northern Arc Capital Ltd, shared his perspective on the partnership, stating, "We are delighted to partner with South Indian Bank in advancing their digital initiatives. nPOS is tailored to cover the full gamut of retail asset classes. With the ability to handle large number of loans, personalized offerings, and an intuitive user interface, nPOS aims to simplify the interactions amongst borrowers, originators, and lenders. The extensive reach of South Indian Bank coupled with Northern Arc’s experience in structured finance aims to create a powerful synergy. By joining forces, South Indian Bank and Northern Arc Capital aims to capitalize on emerging market trends, diversify their portfolios, and provide innovative financial solutions to a broader customer base.”
The other noteworthy attendees at the MOU signing ceremony included Mr. Ramesh U, DGM & Zonal Sales Head – Corporate, South Indian Bank, Mr Prashant George Tharakan, AGM & Head – Investor Relations, South Indian Bank, Mr. Prajin Varghese, AGM & Regional Head – Mumbai, South Indian Bank, Mr. Amit Mandhanya, EVP, Direct Origination, Northern Arc, Ms. Sandhya Dhawan, EVP- Markets, Northern Arc, Ms. Geetu Sehgal, Chief of Staff, Northern Arc, Mr. Sumant Paul, Sr. VP - Markets, Northern Arc reflecting the collective commitment to this association. The partnership between South Indian Bank and Northern Arc Capital is expected to foster an ecosystem that encourages innovation and facilitates the smooth flow of credit across various sectors. Both institutions are confident that this alliance will not only strengthen their market positions but also contribute significantly to the growth of the financial industry.
