Federal Bank partnered with JCB India to finance heavy equipment buyers | Techy Kings

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Federal Bank on Friday said that it has partnered with JCB India to finance potential buyers of heavy construction equipment and boost its loan portfolio.

The private sector lender said it has signed a memorandum of understanding (MOU) with JCB India, a leading manufacturer of earthmoving and construction equipment.

The arrangement will increase financing options for JCB customers in India, Federal Bank said in a statement.

Under the arrangement, the Federal Bank will be the preferred financial partner of the construction equipment manufacturer, where JCB customers can obtain loans from the lender at competitive interest rates.

With the government’s focus on infrastructure development continuing to remain strong, there are various opportunities to create synergies between the teams from JCB India and Federal Bank, Deepak Shetty, Chief Executive Officer and Managing Director of JCB India, said.

“Importantly, it will provide greater financing options to our customers while purchasing JCB machines in urban and rural India,” he added.

Shyam Srinivasan, Managing Director and Chief Executive Officer of Federal Bank, said the lender has officially become a financing partner for JCB India.

“This partnership is proving to be of great benefit to the segment of customers who are looking for easy financial options to grow their business. We are confident that this association will help remove barriers between Bharat and Atmanirbhar Bharat,” he added.

Federal Bank reported a roughly 53% increase in its standalone net profit for the second quarter ended September 2022 or Q2 FY23 to 703.7 crore as against 460.3 crore from the year-ago quarter.

Lenders’ net interest income (NII), which is the difference between interest earned and spent, increased by about 19% to 1,762 crore from 1,479.4 crore year-on-year (YoY). In contrast, net interest margin (NIM) increased to 3.30%, higher by 10 basis points YoY and 8 basis points QoQ.

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