India's largest lender State Bank of India (SBI) has signed a loan agreement amounting to up to $1 billion with JBIC to fund business operations of Japanese automobile manufacturers in India, the bank said in a press release.
The facility is co-financed by SMBC, MUFG Bank, Mizuho Bank, Shizuoka Bank, and Bank of Yokahama. Of this, $600 Mio will be financed by JBIC and $400 Mio by other participating banks. JBIC will provide a guarantee for the portion co-financed by the participating banks, the bank said.
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.
“It is a historic occasion for both SBI and JBIC, as for the first time we are entering into an untied loan,” said C Venkat Nageswar, DMD (IBG), SBI.
As of June 30, 2020, SBI had a deposit base of over Rs 34 lakh crore with a CASA ratio of more than 45 per cent, and advances of nearly Rs 24 lakh crore. SBI commands nearly 34 per cent market share in the home loan and nearly 33 per cent in the auto loans segment.