Sbi Caps Bags Cgftsi Securitisation Mandate
The Credit Guarantee Fund Trust for Small Industries (CGFTSI), an initiative by the Centre and the Small Industries Development Bank of India (Sidbi), has appointed SBI Capital Markets as advisor to conceptualise and put in place the securitisation of guaranteed loans.
N. Venkatasubramanyan, chief executive officer of CGFTSI, announced this in his presentation on the credit fund scheme for small industries today. CGFTSI has a corpus of Rs 427 crore, contributed in the ratio of 4:1 by the government and Sidbi.
Highlighting the process of guaranteeing the lender avoiding collateral security, Venkatasubramanyan said CGFTSI loans will carry a zero per cent risk weight and zero per cent provisions. The average guarantee cover is less than 1.5 per cent a year.
CGFTSI has automated the credit guarantee operations with an efficient interface with existing systems at its clients