Nabard signs agreement with WBSCB

National Bank for Agriculture and Rural Development (Nabard) has entered into an agreement with the West Bengal State Co-operative Bank Ltd (WBSCB) for co-financing loans in the rural areas.

Under the tie-up, WBSCB and Nabard will give loans for medium and long term projects in agriculture and allied sectors, on an equal sharing basis.

While Nabard will charge between 11.50-12.50 per cent on half of the loan component, WBSCB will be free to charge its own rate of interest on the remaining loan amount, according to P Mohanaiah, chief general manager, Nabard (West Bengal).

The bank has entered into similar agreements with the three regional rural banks in the state--Bangiya Gramin Vikas Bank, Paschim Banga Gramin Bank and Uttar Banga Kshetriya Gramin Bank-- during 2008-09. So far, it has given Rs 21 crore under six schemes to the RRBs.

 

"With a view to promote new and innovative projects involving sunrise technology; thrust areas, projects with large outlays and long gestation period, Nabard has opened a co-financing window through which projects are financed directly on a risk sharing basis," said Mohanaiah.

This is the first instance where Nabard has entered into an MoU with a State Co-operative Bank for co-financing anywhere in the country.