Axis Bank, India’s third-largest private sector bank and Piramal Capital and Housing Finance Limited (Piramal Finance), a leading non-banking financial company - housing finance company (NBFC-HFC) and wholly-owned subsidiary of Piramal Enterprises Limited (PEL), have joined hands for the co-lending business, according to a press release today, July 1.

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Through this collaboration, both lenders will offer loans to moderate and low-income customers, with a concentration on rural and semi-urban areas.

According to the information available in the press note, the cooperation would combine Axis Bank's substantial financial experience with Piramal Finance's loan processing technology to analyse clients' credit profiles and give loans at affordable interest rates through Piramal Finance's network of 490 outlets. This collaboration will cater to potential clients who are either new to credit or underserved by larger banks, resulting in a multi-product loan book.  

"This collaboration underscores our mutual commitment to providing credit to underserved markets. By leveraging Axis Bank's expansive network and Piramal Finance's deep reach, we are well-positioned to penetrate deeper geographies across Bharat. Together, our shared goal is to enhance accessibility to formal credit, drive growth, and realize the aspirations of customers across Bharat," said Jairam Sridharan, MD, Piramal Capital & Housing Finance.

In retail lending, Piramal Finance is one of the leading players that address the diverse financing needs of the under-served and unserved people of the ‘Bharat’ market. It has over 1.3 million active customers and a presence in 26 states with a network of 490 conventional branches and 194 microfinance branches, as on 31 March 2024. 

Shares of Axis Bank last traded at Rs 1,261.7 each, down 0.32 per cent while Piramal Enterprises' shares closed at Rs 923.4 apiece, down 0.26 per cent on BSE today, July 1.