Karnataka Bank Digitises MSME Supply Chain Finance

By Milan Rojan

Karnataka Bank has partnered with CredAble to launch its first fully digital Supply Chain Finance (SCF) platform, marking a step in the bank’s digital transformation strategy and expanding technology-enabled working capital financing for micro, small and medium-sized enterprises (MSMEs).

Raghavendra Srinivas Bhat, Managing Director & Chief Executive Officer of Karnataka Bank, said: “By combining our trusted banking expertise with CredAble’s advanced technology platform, we aim to provide seamless and efficient access to working capital for corporates, MSMEs, dealers and suppliers across the value chain.”

The new platform was designed to digitise the end-to-end supply chain finance process, covering programme setup, participant onboarding, transaction processing, monitoring and reporting. It also includes workflow-based approvals, digital documentation, real-time transaction visibility, audit trails and management information system (MIS) reporting to improve operational efficiency and transparency.

Through the collaboration, Karnataka Bank has aimed to strengthen financing for corporate anchors and their dealer and supplier networks while expanding access to working capital for MSMEs. The bank has also set a target of doubling its supply chain finance portfolio during the current financial year through the digital platform.

Ashutosh Taparia, Chief Executive Officer – FinTech Business at CredAble, said digital supply chain finance is becoming an important growth driver for banks seeking to better serve corporates and their MSME ecosystems. He added that the partnership is intended to provide a more seamless working capital financing experience while supporting Karnataka Bank’s ambition to scale its supply chain finance business through a digital and data-led operating model.

The partnership has reflected the growing adoption of digital supply chain finance solutions in India as financial institutions seek to improve liquidity, accelerate credit delivery and strengthen support for MSME growth.