IFC, Central Bank Commit Business Support to India's Priority States

IFC, a member of the World Bank Group, is working with Central Bank of India to explore partnerships to create growth opportunities for small and rural enterprises in India’s priority states of Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan, Chattisgarh, Jharkhand, Orissa, and North-east India.

The partnerships will be designed to promote business-friendly conditions, facilitate regulatory simplification, and generate opportunities for small businesses to support these states in their efforts to attract higher private investment.

“This association marks a key step in our strategy to expand the financial sector’s reach in markets that have largely been untapped. The potential in these states is promising and in partnership with IFC, we hope to launch some important initiatives,” said S. Sridhar, Chairman and Managing Director, Central Bank of India.

IFC and Central Bank of India will explore joint initiatives, including the establishment of a venture fund for investments in small and medium businesses; a possible risk-sharing facility for mid-sized companies; advisory support to rural banks; and co-financing facilities for clients in these states subject to regulatory approvals.

Rashad Kaldany, IFC Vice President, Asia, Eastern Europe, Middle East and North Africa, said:“Financial inclusion in India’s priority states is a key strategic imperative for IFC. Initiatives to reach out to small and rural businesses in economically stressed regions will help create opportunities for those who need them the most.”

Central Bank of India’s partnership with IFC will help identify promising sectors for investment promotion, review the states’ investment policies, and assist state governments in implementing reforms for improved business and economic growth.

To grow opportunities for the underserved in India, IFC provides investment and advisory services for low-income, rural, and fragile regions while building infrastructure and assisting public-private partnerships. To learn more about IFC in South Asia, visit www.ifc.org/southasia.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.

About Central Bank of India

Established in 1911, Central Bank of India was the first Indian commercial bank. In line with guidelines from Reserve Bank of India and also the Government of India, Central Bank plays an increasingly active role in promoting the key areas of agriculture, small scale industries, and medium and large industries. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3,563 branches and 195 extension counters at various centres throughout the country. For more information visit www.centralbankofindia.co.in