State Bank of India (SBI) formed its factoring company, SBI Factors (SBIF) in collaboration with UBI and SIDBI in 1991.
SBIF can draw on the huge branch network of SBI to collect factoring receivables from across the country.
The brand equity of SBI helps it to source funds at a comparatively cheaper cost.
According to D K Jain, managing director of SBIF, the company is aiming at cashing in on these advantages and introduce value-added products to its factoring customers.
SBIF is currently offering factoring products such as reverse factoring for bills and channel financing.
It has been modifying and enlarging these products based on customer feedback. Jain expects the top line of the company to rise by over 100 per cent in 2004-2005. The target is to register a growth rate of 20 per cent each quarter.
