DBS Bank India has provided a bespoke Credit Insurance - Accounts Receivable solution to Tata Metaliks, a pioneer in manufacturing pig iron and DI pipes in India, in collaboration with HDFC ERGO General Insurance Co and reinsured by Atradius, a worldwide provider of trade credit insurance. HDFC ERGO General Insurance Company is a joint venture between Housing Development Finance Corporation (HDFC) and ERGO International AG.
This credit insurance deal is amongst the first to leverage Trade Credit Insurance. The revised framework was rolled out by the Insurance Regulatory & Development Authority of India (IRDAI) in November 2021, allowing banks to participate in this proposition. DBS has proven global expertise in managing Trade Credit solutions and is using its global experience to offer best-in-class solutions to customers in India.
Through the collaboration between DBS, HDFC ERGO and Atradius, this solution enables corporates to transfer the risk of their account receivables onto an insurer while getting financing against those insured receivables from a bank. Corporates can leverage this solution to transform the credit receivables, reduce risk and speed up their cash conversion cycle. The ability to increase sales to long-standing customers of the corporates differentiates this solution from other financing propositions. Therefore, it is a unique value addition for businesses.
HDFC offers a whole gamut of products like loans to individuals, loans to corporates, construction finance, and lease rental discounting. The financial conglomerate has subsidiaries and associates in insurance (general and life), asset management, education finance, venture funds and banking services.
| Company Name | CMP |
|---|---|
| LIC Housing Finance | 581.30 |
| Housing & Urban Dev. | 232.30 |
| Bajaj Housing Financ | 87.55 |
| Piramal Finance | 2017.85 |
| PNB Housing Finance | 1090.90 |
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