IndusInd Bank gets $125 million loan from Citi, JICA

12 Apr 2023 , 01:41 AM

IndusInd Bank has received a funding line of USD 125 million (Rs 1,044 crore) from a co-finance agreement with Japanese lender JICA and Citibank.

On Tuesday, IndusInd Bank said in an official statement it plans to utilize the co-finance funding for on-lending to the agricultural sector in India.

According to the statement, the funding line consists of a JPY 13 billion loan (equivalent to approximately USD 97.45 million) from Japan International Cooperation Agency (JICA), as well as USD 30 million from Citi to be provided to IndusInd Bank.

In recent years, there has been a noticeable increase in funding commitments from JICA to India, coinciding with the strengthening of ties between India and Japan. Additionally, the two nations have joined forces with the US and Australia to form the Quad.

JICA has previously pledged to support India with over Rs 4,000 crore towards the construction of the Mumbai Trans Harbour Link.

According to official data referenced in the Citi statement, the agriculture sector makes up 17% of India’s GDP and employs 45% of the population. The statement highlights the pressing need to enhance financial access as a means of promoting capital investments in this sector.

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