Mumbai, Mar 31 (IANS): Lending major State Bank of India (SBI) has entered into a loan agreement amounting up to $1 billion with Japanese government owned financial institution, JBIC.

According to the lender, the loan is intended to promote 'smooth flow of funds' for the whole range of business operations of Japanese automobile manufacturers in India.

SBI has signed a similar deal with JBIC in October 2020.

"Covid 19 crisis has delivered a significant shock to global trade, disrupted production lines and depressed global demand," said Dinesh Khara, Chairman, SBI.

"At a time when people are preferring personal mode of transport, this collaboration between SBI and JBIC will help the bank in extending loan facility to entire supply chain of Japanese automobile industry including suppliers, dealers and ultimately to the end users."

The policy-based financial institution has the objective of contributing to the sound development of Japan, the international economy and society.

According to Kenichi Ayukawa, Managing Director and CEO of Maruti Suzuki: "Maruti Suzuki is making efforts to balance between the environmental friendliness of our vehicles and our customer's need."

"The special support for our environment friendly vehicles will accelerate Suzuki group's initiative towards environmental care."