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International Finance Corp (IFC), a World Bank Group member, will give trade financing of $51 million to Kotak Mahindra bank to aid small and medium enterprises (SMEs) hit by recession.
In a statement, IFC said the trade finance facility would offer Kotak Mahindra risk coverage.
"This is the first bank IFC has supported in trade finance in India under its Global Trade Finance Program," it said in the statement.
"IFC's support to Kotak Mahindra Bank reflects our commitment to help businesses in India and other emerging markets overcome the effects of the global economic crisis," said IFC Executive Vice President and Chief Executive Lars Thunell.
"The trade facility will improve Kotak's ability to provide short-term trade funding for smaller businesses, which is vital given their reduced access to foreign currency financing amid the ongoing global financial crisis."
Dipak Gupta, Kotak Mahindra Bank Executive Director, said, "This will help us provide a wider base of short-term foreign-currency trade finance products."
