DCB Bank Limited, Maharashtra-based private sector commercial bank, has recently announced taking over a minority stake of approximately 9% in Bengaluru-based Non-Banking Financial Company (NBFC), Techfino Capital Private Limited.
Reports suggest that this move would enable DCB to upgrade its tech stack apart from on-lending to customers.
For the record, NBFC makes use of a modern technology platform to deliver customized consumer loans in the education and healthcare sectors. Moreover, Techfino Capital also plans to enter the value chain and eco-system of education and healthcare funding medium and small-term loans over a span of 2 to 3 years’ of time frame.
An official source close to DCB Bank stated that both Techfino and DCB complement each other’s strengths, and this investment stands out to be an incredible opportunity for both these organizations to expand the customer franchise.
Meanwhile, Head of Agri and Inclusive Banking at DCB Bank, Narendranath Mishra quoted that the organization is thrilled to work in alliance with TCPL in the upcoming years. According to Mr. Mishra, micro or granular loans hold a lot of promise as a financial solution.
Narendranath added that to build and strengthen a granular loan profile with nuance and patience, the organizations have been respecting each other’s expertise and experience and are working closely to establish and tackle the issues being faced by consumers regarding healthcare and education loans.
On the other hand, Jayaprakash Patra, Co-Founder Director of Techfino commented that the organization’s association with DCB Bank stands out to be an important milestone for the firm.
Mr. Patra further mentioned that while making use of TCPL’s comprehensive tech platform, Techfino is hoping to build a win-win environment by offering its customers with diverse customized financial solutions.
Importantly, the shares of DCB Bank settled 6.32% higher at Rs. 92.55 apiece on BSE on April 20th, 2021.