IFC-SEDF to support UTI Bank in North-East

New Delhi, Feb 21 (UNI) The IFC South Asia Enterprise Development Facility (IFC-SEDF) has announced support for UTI Bank in expanding its operations in North-East relating to improvment of access to finance for Micro, Small, and Medium Enterprises (MSME). UTI Bank is a member of the Committee on Financial Sector Plan for the North-East region and has been on the look out for various strategies for financial inclusion of its people.

"We are expanding our branch network in the region and the MSME sector is an area of keen interest to us. A collaboration with IFC's facility fits well with our overall plan. The bank is expected to benefit from the rich experience of IFC-SEDF and would like to bring in international best practices in smaller business lending to the North-East," Mr Ashok Kumar, Executive Director of UTI Bank, said yesterday.

At the signing ceremony for the Memorandum of Understanding, Mr Anil Sinha, General Manager of IFC-SEDF said, "The opportunity to work with UTI Bank is in line with our commitment to facilitate and strengthen private enterprise growth in North-East India. We will collaborate with UTI Bank in developing appropriate banking products and services and building their institutional capacity through training. We will also introduce best practice environmental and social considerations in a challenging environment, drawing on IFC's international expertise.

" Mr Sinha, is also the South Asia Regional Coordinator for IFC's Advisory Services.

He said an increasingly large component of the Corporation's contribution is for the growth of the private sector in developing regions.

The scope of the collaboration will include developing a profitable Micro, Small and Medium Enterprise business model, supporting service-based marketing linkages and export-oriented operations, particularly for enterprises involved in value-added agricultural production and supporting development of micro, small, and medium enterprise by creating clusters of raw material production.

It will entail encouragement of adoption of appropriate environmental and social policies.

IFC-SEDF has its office in Guwahati and has a focused attention on projects relating to the North-East. Over the last three years IFC-SEDF has worked in agri-business, livestock and private health care sectors.

A release here listed key success stories regarding the organisation working on a partnership basis. These include the introduction of a new retail chain of drug stores, alternative crops in tea gardens, poultry layer birds and rural business hubs.

In future, IFC-SEDF intends to work with private sector SMEs in the areas of organic farming and building the appropriate value chains, it said.

UNI