Shares of the State Bank of India (SBI) rose more than a percent on Friday, a day after India’s largest lender announced its partnership with five housing finance companies.
A 10:30 am, SBI shares were trading a percent higher on the BSE and NSE each, at Rs 491.85 and Rs 491.95, respectively.
SBI has entered into co-lending agreements with PNB Housing Finance, IIFL Home Finance, Shriram Housing Finance, Edelweiss Housing Finance, and Capri Global Housing Finance to serve the underserved and unserved borrowers.
RBI had issued guidelines on the co-lending scheme for banks and HFCs/NBFCs for priority sector lending to improve the flow of credit to the unserved and underserved sectors and make funds available to borrowers at an affordable cost.
SBI Chairman Dinesh Khara said, “This collaboration will enhance our distribution network as we aim to extend our credit reach to more home loan borrowers of the unserved and underserved segments. Such partnerships align with our commitment to accelerate effective and affordable credit to small home buyers in India.”
The tie-ups will contribute to the government’s vision of ‘Housing for All by 2024’, he added.
The co-lending model aims to give the borrower the best interest rate and better reach, it said. In a separate release, Shriram Housing Finance said the two entities will jointly service housing loan customers as per the 20:80 co-lending model of the RBI.