Yes Bank Eyes To Finance Agri-Biz

Agriculture may be the slowest growing sector of the Indian economy but it is also throwing up big opportunities that banks are eager to cash in on.Yes Bank is in talks with six state governments to help set-up and finance private public partnerships in the agri-business sector. The Planning Commission has approved the proposal and details are being worked out with state governments.

These projects will bring in private players to invest in agri-related businesses in partnership with state governments. The bank is already working on eight such projects in the supply chain management areas with an estimated investment of Rs 1,500 - 1,800 crore.

We are in talks with state governments in Rajasthan, Gujarat, Orissa. In fact, we are running mandates for these state governments. Right now focusing on the supply chain model where essentially buyers and sellers will converge. There will be price discovery, a transparent mechanism, our estimate is that we will prevent 25 - 30 per cent of financial leakages that happen, said Somak Ghosh, President - Development Banking, Yes Bank.

Source : www.indian-commodity.com