India Factoring and Finance Solutions Private Limited (India Factoring), a joint-venture between FIMBank Group (Malta), Punjab National Bank (India), Banca IFIS (Italy), and Blend Financial Services Ltd. (India), was recently launched during a ceremony presided over by India’s Union Minister of State for Finance Shri Namo Narain Meena.
India Factoring received its Certificate of Registration from the Reserve Bank of India late last year, permitting it to commence business as a Non-Bank Financial Institution. The company aims to leverage the international expertise of its investors in offering factoring, forfaiting and allied trade finance services to small and medium as well as mid-market corporates in India. The company is a member of the International Factors Group (IFG), which is a renowned international association of factoring companies. India Factoring believes that it has the right combination of infrastructure, knowledge of the Indian market and global expertise which will enable it to emerge as a market leader within the next two to three years. The company aims to have ground presence in Tier-I and Tier-II cities and focus on SMEs engaged in manufacturing, trading, exports and service industries.
Speaking on the occasion, Shri K. R. Kamath, Chairman of Punjab National Bank, said that “the launch of India Factoring reaffirms our commitment to Indian entrepreneurs at all levels. We believe that SMEs stand to benefit from products such as Factoring.” Mr. Najeeb Al Saleh, Chairman of FIMBank, commented that SMEs are at the heart of India’s growth story and products like Factoring would work as additional key drivers of SME growth and allow them to move at an even faster trajectory. While assuring full support to India Factoring, Mr. Erik Timmermans, Secretary General of the International Factors Group, stressed the need for training and education and invited Indian factoring companies to send employees to pursue their studies at the IFA Academy in Brussels. On his part, Mr. Jereon Kohnstamm, Secretary General of Factors Chain International mentioned that “the promoters of India Factoring are of high pedigree and bring along technical expertise in domestic and international markets. The start-up management team has about 50 years of Factoring industry experience as well as a wealth of experience in understanding and mitigating risk associated with the transaction.”
Mumbai-headquartered India Factoring and Finance Solutions Pvt. Ltd currently has authorized equity capital of Rs 1 billion, which is projected to be progressively increased to Rs 4-5 billion to sustain the business growth.
FIMBank plc is a Malta-based credit institution which specializes in international trade finance. The Bank has offices in Malta, London and Dubai, and, through its wholly-owned subsidiary London Forfaiting Company, is present in a number of important financial centres. FIMBank places a strategic focus on Factoring and Forfaiting business, with joint-venture factoring companies in Egypt, UAE, Lebanon and Russia. Punjab National Bank (PNB) is the largest nationalised bank in India. PNB, which commenced operations in 1895, has over 50 million customers and more than 5,000 offices, including five overseas branches. Banca IFIS (IFIS) has been engaged in the business of Factoring since 1983. It is authorised to carry out banking activities in Italy and specializes in providing financial support to SMEs. Blend Financial Services Ltd is an integrated global financial services company offering debt syndication services, equity advisory services, insurance advisory services, cross border mergers and acquisitions as well as management advisory services.
Photo caption: Caption: FIMBank Chairman Najeeb Al Saleh (left) addressing the audience on the occasion of the launch of India Factoring.