Central Bank of India jumps over 4% on entering into a new partnership; details inside

On Thursday, Central Bank Of India shares surged by 4.75% to trade at Rs 51.38, from its previous closing of Rs 49.05 on the BSE.

About the partnership

Central Bank of India has entered into a strategic Co-Lending Partnership with Kisetsu Saison Finance (India) to offer MSME Loans at competitive rates, subject to compliance with the applicable law(s) including the applicable guidelines issued by Reserve Bank of India (RBI). The participation by both entities in this Co-Lending arrangement will result in greater expansion of the portfolio by Central Bank of India and Kisetsu Saison Finance (India).

Under the arrangement, Kisetsu Saison Finance (India) will originate and process Loan proposals under the MSME Sector as per jointly formulated credit parameters and eligibility criteria and the Central Bank of India will take into its books 80% of the MSME Loans under mutually agreed terms. Kisetsu Saison Finance (India) will service the loan account throughout the life cycle of the loan. The Co-Lending arrangement is expected to benefit both entities to offer convenient experience and customer delight to their customers as well as expanding their reach across India.

Company profile

Central Bank of India is a commercial bank. The bank’s segments include treasury operations, corporate/wholesale banking, retail banking and other banking business.

Stock price movement

Today, the stock closed at Rs 50.19, up by 2.32% from its previous closing. The stock opened at Rs 49.10 and has touched a high and low of Rs 51.38 and Rs 49.10, respectively. The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high and low of Rs 55.99 and Rs 22.25, respectively. Last one week high and low of the scrip stood at Rs 51.38 and Rs 48.06 respectively. The current market cap of the company is Rs 43,569.64 crore.

The promoters holding in the company stood at 93.08%, while Institutions and Non-Institutions held 3.01% and 3.91%, respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.