Country’s largest lender, State Bank of India, has raised $1 billion from Japan Bank for International Cooperation (JBIC) to extend loans to supply chain of Japanese automobile industry in India.
SBI signed a loan agreement with JBIC, taking the total facility to $2 billion. It has inked similar agreement for $1 billion in October 2020, SBI said in a statement. Bank did not disclose terms of agreement including tenure and interest charged for loan facility.
The virtual signing ceremony event was held in the presence of Dinesh Khara, Chairman, SBI along with senior executives of SBI, Hayashi Nobumitsu, Deputy Governor (JBIC) and Ayukawa Kenichi, CEO & MD of Maruti Suzuki.
The loan is in the form of refinance against the funding support provided to the manufacturers, suppliers and dealers of Japanese automobiles in India. These businesses are recovering from reduced sales of automobiles due to the COVID-19 pandemic. The financing will assist the Government of India’s ‘Make in India’ initiative.
Dinesh Khara, Chairman, SBI said: “Covid 19 crisis has delivered a significant shock to global trade, disrupted production lines and depressed global demand. This collaboration (between SBI and JBIC) will help the bank in extending loan facility to entire supply chain at a time when people are preferring personal mode of transport.
JBIC is a policy-based financial institution, wholly owned by the Japanese government, with the objective of contributing to the sound development of Japan, the international economy and society.