SBI to use fresh Rs700-cr EIB loan for infrastructure development

The State Bank of India, the country's largest commercial bank, has signed a loan agreement worth €100 million (about Rs700 crore) with the European Investment Bank for lending to private businesses in India, in what is the third tranche of a total sanctioned loan of €200 million from EIB.

The loan will be used mainly to support the development of small and medium enterprises (SMEs), as well as social and economic infrastructure and battling climate change, SBI said in a release.

The agreement was facilitated by SBI Capital Markets, an arm of the state-owned SBI.

"The EIB funds will be earmarked for financing projects across a broad range of sectors, including manufacturing, wholesale and retail trade and services," the release said.

Agreements related to the first tranche of €55 million and the second of €45 million were signed in June and November 2014.