Comments
Leading German lender Deutsche Bank AG will lend €68.87 million (nearly ₹600 crore) to the National Cooperative Development Corporation (NCDC), a development finance statutory institution under the Ministry of Agriculture and Farmers’ Welfare, for financing farmer co-operative initiatives in the country.
The loan agreement between Deutsche Bank and NCDC is expected to be signed on Tuesday in presence of Agriculture Minister Narendra Singh Tomar and other dignitaries.
“It is for the first time a German bank is coming forward to lend us ₹600 crore, which may seem less as compared to the ₹3,000 crore exposure we have to Sumitomo Mitsubishi Bank of Japan.
“But I am confident this would also grow to that level or go beyond that, considering European banks are normally very aggressive,” NCDC Managing Director Sundeep Nayak told BusinessLine .
According to him, the agreement with Deutsche Bank would be operational immediately. Nayak said the funds will be used mainly to support NCDC’s activities around Farmer Producer Organisations (FPOs). Along with NABARD and Small Farmer Agri-Business Consortium, NCDC is the lead agency for 10,000 new FPOs which will be set up over the next few years in the country.
“In Germany too, co-operatives have played a big role in setting up vibrant sustainable businesses. In India, 94 per cent of farmers are part of at least one co-operative, he said. Explaining further about NCDC’s support to the co-operative sector, Nayak said the corporation has extended loans up to 16 billion Euros ( ₹1,42,880 crore) to co-operatives of various sizes since 2014.
With efficient lean structure and net zero NPA, the NCDC has been able to compete with other financial institutions working in the co-operative sector much more efficiently, he claimed.
NCDC would also sign a memorandum of understanding with Kolkata-based Indian Chamber of Commerce on Tuesday. Through this pact, the ICC will help FPOs sell their produce to private sector as well as create capacity building for finding an export market, Nayak said.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.