Satin Creditcare Network Ltd. plans to transfer its micro, small and medium enterprises, or MSME, lending business to a separate nonbanking finance company, Business Standard reported Sept. 4, citing the company's chairman and managing director, H.P. Singh.
The company is applying to the Reserve Bank of India to set up a wholly owned nonbanking financial company, Satin Finserve Ltd., which will handle the MSME lending business, Singh said.
The chairman noted that MSME lending business will continue to be handled by Satin Creditcare Network until the nonbanking financial company is approved.
The company is transferring its MSME lending business to accommodate the central bank's rule that 85% of its lending has to be to the microfinance segment, Singh added.
Satin Creditcare Network, which operates in 20 states in India, plans to start operations in two more states in the country's south in the current fiscal year ending March 31, 2019.