SBI: SBI, JBIC ink $1 b pact to refinance loans to Japan’s auto cos in India

Kolkata: State Bank of India signed a loan agreement of $1 billion with Japan Bank for International Cooperation (JBIC), taking the total facility to $2 billion. A similar facility for $1 billion was signed in October 2020.

The loan is intended to promote the smooth flow of funds for the whole range of business operations of Japanese automobile manufacturers in India,

said in a statement.

“Covid 19 crisis has delivered a significant shock to global trade, disrupted production lines and depressed global demand. At a time when people are preferring personal modes of transport, this collaboration between SBI and JBIC will help the bank in extending loan facility to the entire supply chain of the Japanese automobile industry including suppliers, dealers and ultimately the end-users,” SBI chairman Dinesh Khara said.

The loan is in the form of refinancing against the funding support provided to the manufacturers, suppliers and dealers of Japanese automobiles in India, whose business activities are recovering from reduced sales due to Covid-19.