IFC, a member of the World Bank Group, has said it will work to improve banking services for farmers in Andhra Pradesh, including developing new products.

It will help Andhra Pradesh State Cooperative Bank offer new products for small farmers and in expanding the banking services.

Through this initiative, the state cooperative bank will design new credit and non-credit products, including loans, savings, insurance, remittances and other offerings.

IFC will assist the bank in developing a risk management solution and help check over-indebtedness among farmers. The project will also include training for bank staff and member institutions.

Jennifer Isern, who leads IFC’s Access to Finance Work in South Asia, in a statement said: “IFC will work with the bank to develop flexible financial products along with increased financial awareness, which will help address the agri-finance needs of the farmers while controlling business risks.’’

IFC will continue to play a role in promoting best practices in the microfinance sector.

Kasu Venkata Krishna Reddy, State Minister for Cooperation, said: “It is vital to develop a programme that addresses the financing challenges of farmers in an agri-dominant state. This will help us meet the credit needs of the farmers.’’

The State Cooperative Bank serves 4.3 million farmers through a network of District Cooperative Central Banks and Primary Agricultural Cooperative Credit Societies.

Y. Vijayender Reddy, President, Andhra Pradesh State Cooperative Bank, said: “Credit products under the priority sector lending tend to be mostly basic crop loans, which do not meet the full financing needs of farmers.’’

According to Nabard, approximately 50 per cent of the farmers in India have limited or no access to formal financial services.

IFC, APCOB, Farmers, Banking Services

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