Punjab National Bank (PNB), India’s leading public sector bank, has forged a strategic partnership with Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMFL), popularly known as “Amul,” to extend small-ticket Mudra loans to Amul’s esteemed dealers. The collaboration aims to provide financial support to Amul’s retailers, wholesale dealers, and exclusive Amul Preferred Outlets-Milk Parlours, facilitating their growth and expansion.
The significant milestone was marked by the signing of a memorandum of understanding (MoU) between PNB and GCMMFL on July 1st, 2023. The signing ceremony took place at PNB’s corporate office in Dwarka, New Delhi, and was attended by prominent officials including Jayen Mehta, Managing Director of GCMMFL, M. Paramasivam, Executive Director of PNB, Sunil Kumar Chugh and Sunil Goyal, Chief General Managers of PNB, Atul Agarwal, Senior General Manager and Chief Financial Officer of GCMMFL, along with other senior representatives from both organizations.
Under the Mudra scheme, PNB will leverage its expertise to offer small-ticket financing to Amul’s extensive network, comprising over 11 lakh retailers, wholesale dealers, and various stakeholders. The partnership aims to streamline Amul’s supply chain while creating unique opportunities for PNB to expand its customer base and reinforce its commitment to fostering economic growth and financial inclusion.
PNB plans to integrate cutting-edge digital channels, including QR codes, point-of-sale (POS) systems, and the Unified Payments Interface (UPI), to enhance convenience and efficiency in the loan disbursement process. By leveraging these digital platforms, the bank aims to provide a seamless and hassle-free experience for the loan applicants.
Moreover, PNB will extend additional services such as supply chain finance and enable digital Equated Monthly Installment (EMI) collections, further enhancing the convenience and flexibility for the beneficiaries. The bank also plans to offer working capital limits, ensuring that Amul’s retailers and dealers have sufficient financial resources to meet their operational requirements and seize growth opportunities.
Expressing his delight over the partnership, M. Paramasivam, Executive Director of PNB, stated, “We are pleased to partner with one of India’s largest food product marketing organizations. This alliance will not only streamline Amul’s supply chain but also create unique opportunities for the bank to expand its customer base.”
The collaboration between PNB and Amul holds immense significance as it brings together two renowned and trusted entities in their respective domains. PNB, with its vast network and experience in serving customers across the country, and Amul, known for its high-quality dairy products and strong market presence, are set to create a synergy that will contribute to the growth and development of the dairy industry.
The partnership aligns with the government’s vision of promoting financial inclusion and empowering small and medium-sized enterprises (SMEs) by providing them with access to affordable credit. Mudra loans, initiated by the government in 2015, aim to provide financial assistance to micro and small enterprises, enabling them to establish or expand their businesses and contribute to job creation and economic development.
With PNB’s extensive reach and Amul’s widespread network of dealers, this collaboration holds the potential to generate a significant impact across the country. By facilitating access to finance and offering tailored solutions to Amul’s retailers and dealers, PNB is playing a crucial role in empowering small businesses and fueling the growth of the dairy industry.
As the partnership between PNB and Amul sets forth, it is expected to create a ripple effect in the industry, inspiring other banks and organizations to forge similar alliances and explore innovative ways to support the growth of small enterprises.
