IndusInd Bank and Asian Development Bank partner to offer supply chain finance to MSMEs

Credit and finance for MSMEs: Private sector bank IndusInd Bank announced its partnership with the Asian Development Bank (ADB), a regional development bank serving the Asia and Pacific region, to create a partial guarantee program to encourage supply chain finance solutions in India.

The initiative will have an initial outlay of $70 million (Rs 560 crore), IndusInd Bank said in a statement.

Through this collaboration, the bank looks forward to expanding its MSME portfolio and strengthening its existing strategies for the sector.

Also read: Nearly Rs 15,000 crore of goods procured by government from micro and small businesses in FY23 so far: Government data

IndusInd already has some product structures for SCF and a digital portal called “earlyCredit” to enable supply chain finance for companies, suppliers and dealers.

Amitabh Saraff, Head of Financial Services, SMEs and SCF, said the partnership will strengthen their SCF platform and provide opportunities for innovation. “We look forward to financing a company’s entire ecosystem by offering holistic SCF solutions, meeting the end-to-end requirements of companies and their dealers or suppliers, becoming a true partner in their growth trajectory. “, did he declare.

The bank’s SCF platform caters to all industry sectors, including automotive, steel, fast moving consumer goods (FMCG), white goods, among others. According to the bank, they facilitate suppliers and vendors with timely availability of funds, channel financing for purchases from business-associated dealers, and provide structured finance solutions for businesses to manage their cash flow.

Also Read: Amazon Introduces Seller Storage Service to Tackle Supply Chain Issues

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