The supply chain finance business provides loan and working capital support to manufacturers and dealers of large industrial equipment. India-based Centrum is expected to take on board the executive team of about 60 people, scaling up the business significantly after the buyout.
A definitive agreement is expected to be signed by the end of August 2018. In the April-June 2018 quarter, wholesale financing grew at the slowest pace - by 7% year-on-year - compared with a 76% surge in financing of rural assets and 48% jump in funding house purchases. Total lending business grew 27% to INR 85,380 crore during the three-month period.
Centrum, which recently sold its foreign exchange business to NASDAQ-listed Ebix Corp, is looking to expand its lending business and has been aggressively expanding both retail and wholesale loans. In November 2018, Centrum acquired FirstRand Banks Indian micro finance portfolio along with 300 employees and 25 offices across the country.
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