India Factoring receives green light

19.10.2010

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), has received its Certificate of Registration from the Reserve Bank of India, permitting it to commence business as a Non-Bank Financial Institution. India Factoring will provide Factoring, Forfaiting and Trade Finance solutions primarily to Small and Medium Enterprises (SME) and Small Scale Industries (SSI).

FIMBank President Margrith Lütschg-Emmenegger stated that “Factoring and Forfaiting are very important trade finance products for the development of economies worldwide. We are therefore delighted to be able to offer these professionally together with excellent partners through this Joint Venture Company in the Indian market.” India Factoring CEO Sudeb Sarbadhikary was delighted with the news of the regulatory approval: “We understand the individuality of SME’s needs in India and have created a suite of diverse domestic Factoring products to enable them to capitalise on outstanding invoices and debtor balances as one of their greatest assets”, he explained.

India Factoring plans to open offices across India to service its clients, while in the near future it intends to start offering international factoring products, subject to the necessary regulatory approvals. The company expects to leverage on the strengths of its shareholders, offering products and establishing procedures in line with international best practice, having access to resources and achieving effective domestic outreach. It also intends to take up membership of the leading international Factoring associations, such as International Factors Group and Factors Chain International, with a view to promoting its cross border factoring business while keeping abreast of international standards.

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.

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