YES Bank has partnered with the Overseas Private Investment Corporation (OPIC), the U.S. Governments Development Finance Institution and Wells Fargo on an agreement to increase lending to small and medium enterprises (SMEs) in India.
Under the agreement, OPIC will provide $75 million in financing and up to $75 million in syndicated financing jointly arranged by Wells Fargo Bank and OPIC to YES Bank, a statement said here on Friday.
"Specifically, $50 million of the financing will be used to expand support to women-owned businesses, while another $50 million will be used for financing SME businesses in low-income states," the statement said.
"This significant co-financing agreement comes on the back of successful execution of two similar facilities by YES Bank over the past two years. This agreement with OPIC further strengthens YES Bank's ability to fund and support the unique needs of SMEs and the entrepreneurial ecosystem; thereby boosting the developmental agenda in low-income states of India," said Rana Kapoor, Managing Director and CEO, YES Bank.
"The agreement underscores the potential of YES Bank's business and financial model. This facility will support financing to women entrepreneurs in India for driving future economic growth and job creation" he added.
"OPIC's facility will help YES BANK expand its SME lending capacity, specifically enabling them to reach both women and entrepreneurs in low-income states who have much to contribute to India's economic activity," said Dev Jagadesan, OPIC's Acting President and CEO.
The SMEs contribute about 45 per cent of industrial output and employ 42 million people in India. An estimated three million women-owned businesses in India employ over eight million people. However, only about a quarter of them are able to get the finance they need to grow and create jobs.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)