A master agreement has been signed between SBI and Adani Capital for co-lending to farmers for the purchase of tractors and farm implements to increase efficiency in farm operations and productivity of crops.

In a statement, SBI announced that with this partnership, it would be able to target farmer customers in the remote parts of the country looking for adoption of farm mechanization to enhance the productivity of crops.  It underscored that it is actively looking at co-lending opportunities with various NBFCs for financing farm mechanization, warehouse receipt finance, Farmer Producer Organisations (FPOs), etc., for enhancing credit flow to double the farmers’ income. According to Dinesh Khara, Chairman, SBI, the partnership will support SBI to extend its customer base as well as to connect with the underserved farming segment of the country and further add towards the growth of our country's farm economy. He told that SBI will proceed to work with more NBFCs and reach out to most customers in extremely remote areas and provide last-mile banking services.

According to Gaurav Gupta, MD & CEO, Adani Capital this partnership intends to contribute to farm mechanization and play a role in improving productivity and income of the farm segment in our country. Adani Capital is the NBFC arm of Adani Group.