State Bank of India inks Rs 700 crore loan pact with European bank

State Bank of India has signed a loan agreement for 100 million euro (about Rs 700 crore) with European Investment Bank for lending to private businesses in the country.

This is the third tranche of a total sanctioned loan of 200 million euro by EIB.

The loan will be utilised to support the development of private sector, in particular small and medium-sized enterprises (SMEs), social and economic infrastructure as well as climate change mitigation and adaptation in the country, SBI said in a release.

The agreement was facilitated by SBI Capital Markets, a subsidiary of the country's largest lender.

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

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