Karnataka Bank Takes a Dip despite Partnership with Clix Capital

17 Jan 2024 , 11:03 AM

After Karnataka Bank partnered with NBFC Clix Capital to offer loans to the MSME sector, the bank’s stock price dropped by around 2 percent in the first day on January 17.

Karnataka Bank was trading at Rs 266.95 at 11.00 am on the BSE, down Rs 5.30 or1.96%.

Through the Yubi Co.lend Platform, Karnataka Bank and Clix Capital have forged a strategic alliance in digital co-lending. The partnership’s primary goal would be to lend money to the MSME sector in India, which is one of the main drivers of the country’s GDP development and job creation.

Through the cooperation, Clix Capital’s powerful and user-friendly lending tech platform and extensive due diligence are combined with Karnataka Bank’s low cost of funds, end-to-end digital capabilities, and expertise to offer credit facilities to this segment.

According to the statement, the partnership’s goal is to offer seamless financing options that are affordable and easily accessible through digital means, allowing both parties to capitalise on one another’s advantages and help the underserved.

The private lender and Satin Creditcare Network signed a co-lending agreement earlier this month in order to support financially economically active women’s Joint Liability Groups (JLG) in rural and semi-urban areas, as well as to stimulate the nation’s microcredit facilities market.

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