The International Finance Corporation (IFC), a member of the World Bank Group, will provide financing of USD 25 million to Federal Bank, a private commercial bank in India, to improve support for small and medium-sized enterprises (SMEs) and to boost international trade opportunities. The deal will “facilitate transactions in challenging markets, promote competitive financing and build bank relationships with new institutions, thereby reducing risk and enabling more smaller businesses to engage in trade.” According to P.C. John, the executive director of Federal Bank, “The trade facility will improve Federal’s ability to support smaller businesses by offering short-term foreign-currency trade finance products.” In the first quarter of 2010, Federal Bank reported INR 10.6 billion (USD 228 million) in total income and INR 350 billion (USD 7.53 billion) in total deposits.
By Conner Brannen, Research Assistant
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
About Federal Bank:
Federal Bank is a private commercial bank in India that has branches nationwide and is headquartered in the state of Kerala. Federal Bank was founded in 1945. In the first quarter of 2010, Federal Bank reported INR 10.6 billion (USD 228 million) in total income and INR 350 billion (USD 7.53 billion) in total deposits.
Sources and Additional Resources:
International Finance Corporation: “IFC Partners with India’s Federal Bank to Support Small Businesses,” July 29, 2010: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/BD33C6A3F15DE5828525776F0050AEF3?OpenDocument
MicroCapital Universe Profile: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MICROCAPITAL BRIEF: International Finance Corporation (IFC) and Gesellschaft fur Technische Zusammenarbeit (GTZ) to Provide Technical Assistance to Philippines? Central Bank to Spur Lending to Small and Medium-Sized Enterprises, July 28, 2010: https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-and-gesellschaft-fur-technische-zusammenarbeit-gtz-to-provide-technical-assistance-to-philippines-central-bank-to-spur-lending-to-small/
MICROCAPITAL BRIEF: The International Finance Corporation (IFC) Pledges Support for Microfinance Sector and Better Access to Credit for Small and Medium-Sized Businesses in Lesotho, July 16, 2010: https://www.microcapital.org/microcapital-brief-the-international-finance-corporation-ifc-pledges-support-for-microfinance-sector-and-better-access-to-credit-for-small-and-medium-sized-businesses-in-lesotho/
MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $30.5m in Green for Growth Fund, SMEs To Benefit, July 1, 2010: https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-invests-30-5m-in-green-for-growth-fund-smes-to-benefit/
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