Punjab National Bank joins PSB Xchange lending platform

PSB Alliance and Punjab National Bank have signed an agreement to onboard Punjab National Bank as a lending partner on the PSB Xchange platform, adding one of India's largest public sector banks to the digital working capital finance network.

Punjab National Bank will use the platform to offer digital supply chain finance to eligible borrowers linked to participating anchor corporates. The arrangement targets dealers, distributors, and micro, small and medium-sized enterprises seeking working capital through a standardised digital process.

PSB Xchange is a unified platform connecting lenders, corporates, and other ecosystem partners. It is designed to replace fragmented onboarding, manual documentation, and multiple bank integrations with a single digital route for programme setup and financing.

The addition of Punjab National Bank broadens the platform's lender base as banks and corporates in India look for faster ways to extend formal credit across supply chains. For corporates, a wider pool of lenders can help support dealer and distributor networks. For banks, it offers shared infrastructure for onboarding and monitoring.

According to the organisations involved, Punjab National Bank is India's third-largest public sector bank by overall business. It also has an established position in supply chain finance, making its entry significant for a platform that aims to bring large lenders and corporate borrowers together in one system.

Digital process

Supply chain finance in India has often relied on separate integrations between banks and corporates, along with paper-heavy workflows and manual checks. Under the PSB Xchange model, onboarding, credit assessment, and financing are handled through a standardised digital process that participants say should reduce operational friction.

The shared infrastructure also reduces the need for repeated point-to-point integrations between individual lenders and corporates. That can shorten the time needed to launch financing programmes and make portfolio monitoring more consistent across participants.

For smaller businesses, the main attraction is easier access to institutional working capital through the supply chains of larger companies. Dealers, distributors, and MSMEs often face delays in securing formal finance, particularly when onboarding standards differ from one lender to another.

"Punjab National Bank has always been committed to supporting India's businesses through innovative and technology-led banking solutions. By joining PSB Xchange, we are further strengthening our supply chain finance capabilities through a unified digital platform that enables faster onboarding, efficient credit delivery, and improved customer experience. This collaboration aligns with our vision of expanding timely access to working capital for MSMEs while driving greater digital adoption across our financing ecosystem," said Shri M Paramasivam, Executive Director, Punjab National Bank.

Platform network

PSB Alliance develops and operates digital platforms for public sector banks, including PSB Xchange. Veefin Solutions is the technology partner for the platform and is also described as a strategic stakeholder through the Veefin Group.

The partnership reflects a broader push in Indian banking to build shared digital infrastructure rather than maintain isolated financing systems for each institution. In supply chain finance, where multiple participants need to exchange documents, approvals, and credit information, common technology standards can simplify execution for lenders and borrowers alike.

The latest onboarding expands one of India's larger digital supply chain finance networks, according to the organisations involved. A larger lender ecosystem can increase the availability of finance across distribution and dealer channels and give anchor corporates more options when setting up working capital programmes.

"PSB Xchange continues to evolve as collaborative digital infrastructure that brings together lenders, corporates, and ecosystem partners on a common platform. Punjab National Bank's onboarding marks another important milestone in expanding this network. As one of India's largest public sector banks joins the platform, we are further strengthening our collective ability to deliver seamless, technology-driven working capital solutions that improve credit accessibility for businesses across the country," said Ms Anjali Mohanty, MD & CEO, PSB Alliance.

Wider context

India's supply chain finance market has drawn increasing attention as banks seek to reach smaller businesses through established corporate relationships. Digital platforms have become one way to do that, especially in areas where paper-based workflows and multiple approval layers have slowed disbursement.

Public sector banks play a central role in that effort because of their nationwide reach and existing relationships with businesses of different sizes. Bringing more of those lenders onto a common platform could help standardise access to finance in sectors where supplier and distributor credit needs are recurring and time-sensitive.

For Veefin, which works in digital lending, supply chain finance, and transaction banking software, the onboarding also highlights the role of third-party technology providers in reshaping how banks deploy financing products. Rather than build each workflow separately, banks are increasingly using shared platforms to manage customer acquisition, underwriting, and programme administration.

"Punjab National Bank's onboarding is a significant milestone for the PSB Xchange ecosystem. As the third-largest public sector bank in India and one of the country's leading supply chain finance lenders, PNB brings exceptional scale and deep domain expertise to the platform. Their participation further strengthens our vision of building a unified digital infrastructure where banks, corporates, and MSMEs can collaborate seamlessly, enabling faster access to institutional finance and accelerating the digital transformation of supply chain finance in India," said Mr Raja Debnath, Managing Director, Veefin Group.