SBI ties up with Citi for onlending USD 295 mn to Indian farmers

Mumbai, Apr 3 (PTI) The State Bank of India on Thursday said it has entered into a tie-up with global banking major Citi under which India's largest lender will be onlending USD 295 million, or over Rs 2,500 crore of loans, to the country's farmers.
     The two financial sector entities have entered into a partnership for the "social loan facility", an official statement said, adding that Citi has in the past committed USD 1 trillion to sustainable finance by 2030.
     The money from Citi's trade and working capital solutions vertical will be specifically directed towards smallholder farmers in India, to help improve agricultural productivity and enhance their financial well-being, the statement said.
     "SBI will utilise the facility to finance its Kisan Credit Card loan portfolio, to help meet the credit requirements of the agricultural sector, and within this, smallholder farmers," the statement said.
     The bank's deputy managing director in the international banking group, Jayati Bansal, said the lender seeks to deepen financial inclusion through the social loan facility with Citi.
     "Leveraging SBI's extensive network, we aim to reach small and marginal farmers who are at the core of India's agriculture sector but often lack access to essential credit resources," Bansal said.
     Citi's Asia South head of trade and working capital solutions, Mayank Gupta, said the agreement with SBI seeks to unlock positive social impact and propel economic growth.
     The statement said smallholder farmers face pronounced social and economic difficulties, and limited income and restricted access to credit hinder their ability to plan for long-term needs.

(This story has not been edited by THE WEEK and is auto-generated from PTI)