The bank said the loan takes the form of a refinancing against the financial support given to Japanese car manufacturers, suppliers and dealers in India.
The country’s largest lender, the State Bank of India (SBI), said on Wednesday it had raised an additional loan of $ 1 billion (about Rs 7,350 crore) from the Japan Bank for International Cooperation (JBIC) for help Japanese automakers affected by Covid in India.
In October last year, the SBI signed an agreement to raise a $ 1 billion loan. As a result, the latest loan brings the total amount of loans raised from JBIC to $ 2 billion.
The SBI said in a statement that the loan takes the form of a refinancing against financial support provided to Japanese auto makers, suppliers and dealers in India whose business operations have been affected by Covid-19.
The bank added that the loan is intended to promote a smooth flow of funds for the overall business operations of Japanese automakers in India.
JBIC is a policy-oriented financial institution, 100% owned by the Japanese government.
“At a time when people prefer personal modes of transportation, this collaboration between SBI and JBIC will help the bank extend the loan facility to the entire Japanese auto industry supply chain, including suppliers, dealers and ultimately end users, ”said the SBI chair. Dinesh Khara said.