State Bank of India (SBI) has signed a loan agreement with European Investment Bank (EIB) for 100 million euro (around about Rs 700 crore) to provide for the a range of private business sectors in the country.
The EIB or European Investment Bank is an international public bank and its shareholders are the EU member of the states. Thus it makes it the duty of the member states to see to bank’s policy goals and objectives and look over the two most independent and important decision supporting system- the board of governors (BOG) and the board of directors (BOD).
The funds that will be acquired from the loans will be utilized for providing finance for projects across a broad range of sectors. Mainly it will aim at those sectors and businesses which are unable to uphold themselves and lack money and not potential.
The main purpose of the loan will be to help in the development of small scale and medium scale enterprises (also known in short as SMEs). It will also take care of social as well as economic infrastructure and climatic changes, SBI mentioned in a release.
The pact was signed by SBI Capital Markets, a major organ of SBI.
This is the third tranche that will sanction a total amount of 200 million euro as loan by European Investment Bank. Agreements pertaining to the first tranche and the second one were concreted in June and November 2014.
The development is in the hands of SBI which is the most renowned financial institute of the country. All we hope is that all’s well that ends well.