The State Bank of India (SBI) and German Development Bank KfW signed a $300 Million loan facility deal on Tuesday for boosting rural and micro-enterprise on- lending in India. SBI’s priority sector lending activities will be further strengthened by this facility.
The Indian lender bank, in a statement, said that the facility will be used to provide loans to sectors which have been undeserved so far. This will contribute to growth, employment and income in India. The fund raising process will be propelled and arranged by the State Bank of India’s subsidiary, SBI Capital Markets.
V G Kannan, the Managing Director of SBI, and Rolan Siller, Director General Europe and Asia and Nicolai Tust, Principal Country Manager, on behalf of the German Development bank KfW signed the deal in New Delhi on Tuesday.
“Joining hands with India’s largest bank provides an unprecedented opportunity to translate that objective into reality.” said Mr. Siller upon signing the pact with SBI. He further stated that broader financial inclusion is one of the key objectives of the German bank for signing this pact.
Kannan said that he expects SBI’s relationship to grow with KfW in other strategic sectors like clean energy which the country can benefit out of.
Source- business standard