Five years on, co-lending's performance on the field may need a closer look

On paper, the co-lending model is a winner. But it calls for a high level of coordination: Policies would have to be agreed upfront between banks and NBFCs

In September 2022, CRISIL Ratings evaluated its first-ever transaction of receivables originated under co-lending and business correspondent arrangements — for a ticket size of Rs 32-crore — and assigned a ‘Provisional CRISIL A’ to the 'Series A1 pass-through certificates’ issued by Leo August 2022, backed by U GRO Capital. The shadow bank seeks to grow its co-lending book three times to Rs 2,000 crore by the end of FY23, and has signed 18 partnerships, including with State Bank of India and 

IDBI Bank.

Now, not a fortnight passes by without an announcement of a co-lending partnership between banks and non-banking financial