There is a significant risk in co-lending model sustainability after recent budget announcementa:
Here are some points:
In the 2024 Union Budget of India, there was a significant focus on the digitization of Public Sector Undertakings (PSUs) to enhance SME (Small and Medium Enterprises) lending. The key announcements included:
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Digital Platforms for SME Lending: The government proposed the development and enhancement of digital platforms by PSUs to streamline SME lending. These platforms are designed to simplify the loan application process, reduce processing times, and ensure transparency. The initiative aims to make it easier for SMEs to access credit and financial services, thereby supporting their growth and development.
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Integration with National Financial Information Registry: The budget also emphasized the integration of PSUs’ digital lending platforms with the National Financial Information Registry (NFIR). This integration is intended to improve credit assessments and risk management by providing a comprehensive financial history of SMEs.
Does it mean PSUs will end lending through co-lending as they are developing their own platform?
If yes, could this be the reason management is avoiding concol to answer such questions?
Disc: Invested
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