The Hindu Business Line : Nabard plans jt venture micro finance institution

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Nabard plans jt venture micro finance institution

Our Bureau

Kolkata, July 18 In a move that will lead it to a completely new terrain, Nabard (National Bank for Agriculture and Rural Development) plans to set up a micro finance institution (MFI) as a joint venture with banks and other partners.

The FI, which intends to hold 51 per cent in the venture, has received positive feelers from Canara Bank in this regard. The latter, along with others, will together hold the remaining 49 per cent. The MFI will be set up with a capital of Rs 100 crore.

The MFI, observed Dr Y.S.P. Thorat, Chairman, will aim at catering to “the poorest”, especially those in the agri sector. It will compete with the best-known players in the micro finance domain in terms of providing funds at competitive rates.

“Micro finance has come to be marked by practices that are often considered non-transparent. The MFI that we will promote will ensure that credit may be provided at affordable rates, without coercive or opaque systems,” he said.

Nabard is further setting up an agri management institute in Kolkata, an outfit that is expected to critically add to the city’s academic infrastructure.

The institute is expected to create a talent pool for the agri sector.

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Nabard plans jt venture micro finance institution