Bank Signs Co-Lending Deals to Boost Retail Credit Growth
J&K Bank partners with NBFCs (non-banking financial companies) to strengthen its presence in the home loan and gold loan segments. The bank has entered into co-lending arrangements aimed at expanding its retail lending footprint and improving access to credit, particularly beyond the Union Territory of Jammu and Kashmir.
The initiative is part of the bank’s broader strategy to accelerate retail credit growth and reach underserved customers through partnerships with specialised financial institutions.
Partnerships with Home First Finance and IIFL Finance
Under the new agreements, the bank has signed Memorandums of Understanding with two NBFCs.
- Home First Finance Company India Limited for the home loan segment
- IIFL Finance for the gold loan segment
The agreements were signed at the bank’s Jammu Zonal Office in the presence of Managing Director and CEO Amitava Chatterjee and other senior executives from the bank and partner institutions.
The partnership will enable both sides to jointly originate and disburse loans under a co-lending framework designed to combine the strengths of banks and NBFCs.
Co-Lending Model to Improve Credit Delivery
According to the bank’s management, the co-lending model integrates the bank’s strong deposit base and nationwide branch network with the technology-driven credit assessment and distribution capabilities of NBFCs.
This collaboration is expected to speed up loan approvals and expand access to housing and gold loans for customers, including small businesses and middle-income households. The bank believes the model will also help reach new borrower segments that require faster and more customised financial solutions.
Focus on Expansion Beyond Jammu & Kashmir
The bank has been working to increase its presence in markets across the rest of India. Partnerships with NBFCs are seen as a key strategy to scale operations in high-growth retail lending segments such as housing and gold loans.
Home First Finance Company India Limited focuses on affordable housing finance and operates across multiple Indian cities with a growing network of branches and customer touchpoints.
By collaborating with established NBFCs, the bank aims to strengthen its retail lending ecosystem and accelerate credit delivery in emerging business centres across the country.
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Strategy Aligned with Retail Lending Growth
Retail lending has become one of the fastest-growing segments in India’s banking sector. Industry analysts note that partnerships between banks and NBFCs allow lenders to combine capital strength with specialised distribution networks, enabling faster credit expansion.
For Jammu & Kashmir Bank, which already operates a large branch network across multiple states and union territories, such collaborations are expected to open new growth opportunities in the housing and gold loan segments.
