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SBI and Adani Capital inked an agreement for co-lending to farmers

SBI and Adani Capital inked an agreement for co-lending to farmers

To boost agricultural efficiency and crop productivity, the State Bank of India (SBI) has inked a master agreement with Adani Capital for co-lending to farmers for the purchase of tractors and farm tools.

Adani Capital is the Adani Group’s non-banking finance corporation (NBFC) started lending in April 2017, The organization aspires to be the leading financial services firm specializing in financing Retail and Rural Lending and Wholesale Lending.

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SBI stated in a statement that with this collaboration, will be able to target farmer customers in the country’s interior hinterland who are interested in adopting agricultural mechanization to boost crop yield.

Opportunities for co-lending

India’s largest bank stated that it is actively looking at co-lending options with numerous NBFCs to finance agricultural mechanization, warehouse receipt finance, Farmer Producer Organisations (FPOs), and other credit-related activities in order to increase credit flow and double farmers’ income.

‘This relationship will assist SBI to expand its customer base as well as connect with the underserved farming segment of the country, further contributing to the expansion of India’s agriculture economy,’ said Dinesh Khara, Chairman of SBI.

‘We will continue to collaborate with more NBFCs in order to reach out to the widest possible number of customers in remote places and provide last-mile banking services.’

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‘Through this agreement, our goal is to contribute to farm mechanization and play a role in enhancing production and revenue of the agricultural segment,’ said Gaurav Gupta, MD, and CEO of Adani Capital.