Home / Industry / Banking /  SBI signs $1-bn loan agreement with Japan Bank for International Co-operation

State Bank of India on Wednesday announced that the bank signed a loan agreement of $1 billion with Japan Bank for International Co-operation (JBIC).

The loan will provide funds for manufacturers, suppliers and dealers of Japanese automobiles in India. The financing will assist in Government of India’s 'Make in India' initiative.

Of the total loan amount, $600 million will be financed by JBIC and $400 million by other participating banks - SMBC, MUFG Bank, Mizuho Bank, Shizuoka Bank and Bank of Yokahama, SBI said in a release. JBIC will provide a guarantee for the portion co-financed by the participating banks, it said. “The loan is intended to promote smooth flow of funds for the whole range of business operations of Japanese automobile manufacturers in India," the release said.

SBI's deputy managing director (international banking group) C Venkat Nageswar said, “It is a historic occasion for both SBI and JBIC, as for the first time we are entering into an untied loan. This will assist in achieving our Prime Minister's vision of making India “Aatmanirbhar".

As on June 30, 2020, the bank has a deposit base of over Rs. 34 lakh crore with CASA ratio of more than 45% and advances of nearly Rs. 24 lakh crore. SBI commands nearly 34% market share in home loans and nearly 33% in the auto loans segment.

The bank has the largest network of over 22,100 branches in India with an ATM/CDM network of over 58,500 and total BC outlets of more than 62,200. The number of customers using internet banking facilities is about 76 million and mobile banking services stand a little more than 17 million.

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.

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