Private sector player IndusInd Bank has raised $225 million (about Rs 1,445 crore) from a US government funding agency for lending to small and medium enterprises.
Private sector player IndusInd Bank has raised $225 million (about Rs 1,445 crore) from a US government funding agency for lending to small and medium enterprises. The bank said it will utilise about 25 per cent of the US dollar loan from OPIC to fund women entrepreneurs as well as to cater to unbanked domains. The Overseas Private Investment Corporation (OPIC) and IndusInd Bank today executed a finance agreement for a $225 million loan supporting expansion of bank’s micro, small and medium enterprise (MSME) lending programmes across India, a bank statement said.
The eight-year loan tenure is part of OPIC’s commitment of $1 billion loan assistance to underserved small and medium enterprises in India. “Fostering access to finance opportunities for women entrepreneurs and MSMEs is important for increasing higher economic output throughout India,” said Dev Jagadesan, Acting OPIC President and Chief Executive Officer.
IndusInd Bank Managing Director and Chief Executive Officer Romesh Sobti said: “The agreement with OPIC will help IndusInd Bank to further enhance our MSME lending franchise, thus providing the impetus to some of the major growth drivers of our economy.”
Sobti said it will help bank reach out to a new class of global investors so as to fuel growth. OPIC, a self-sustaining US federal agency, has been set up to aid American businesses invest in emerging markets. IndusInd Bank has also inked a separate agreement with US based Wells Fargo Bank for a $20 million loan, 25 per cent of which is slated to fund women entrepreneurs.