In a first, NCDC secures Rs 600 cr loan from Deutsche Bank
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New Delhi, April 14: The National Cooperative Development Corporation (NCDC) has secured Rs 600 crore loan from Deutsche Bank, Germany’s largest bank, for onward lending to cooperatives in the country. The agreement will strengthen India-Germany bilateral ties.
This is for the first time that one of the largest European banks in the world is lending to the NCDC. This reflects the confidence of the global financial institution in the Indian development finance institution, particularly at a time when global economic turmoil created by the COVID-19 crisis has made lending a challenging proposition.
An agreement in this regard was inked on Tuesday between NCDC and the German Bank in presence of Agriculture Minister Narendra Singh Tomar in New Delhi. The Minister also presided over signing of an agreement between the Indian Chamber of Commerce and NCDC to boost farmers linkages with markets.
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Speaking on the occasion, Tomar said, Prime Minister Narendra Modi has given a new vision to India’s agrarian landscape and also to the economic relations with Germany. He added that the Farmer Producer Organizations being set up in the country would be able to access easier credit and market through the NCDC agreements with ICC and Deutsche Bank and it will help small and marginal farmers.
Deutsche Bank’s initiative in India is just one of the many key business interests shown by German companies in India over the years. The Ministry said, "Today, more than 1700 German companies are active in India, providing around 4, 00,000 direct and indirect jobs. Germany is India's largest trading partner in Europe and among India's top ten global trade partners."
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Set up in 1963, the NCDC is a development finance statutory institution under the Ministry of Agriculture and Farmers Welfare. It has extended loans to the tune of Euro 16 Billion to cooperatives of various sizes since 2014. With zero net NPA, NCDC has Pan India presence with its 18 regional directorates catering to all the States.