HDFC Bank – CB to promote commercial scale dairy development among small farmers
View(s):HDFC Bank of Sri Lanka recently country signed an MOU with the Central Bank (CB) which enables HDFC to further diversify its loan portfolio towards the dairy development industry. The new scheme ‘Commercial Scale Dairy Development Loan Scheme (CSDDLS)’ will focus on medium and large scale entrepreneurs who are engaged in the dairy development sector, HDFC said in a media release.
The bank said it expects that the credit facilities at a concessionary rate of interest under this new loan scheme will encourage
HDFC Bank CEO/GM Nimal Mamaduwa (right, centre) exchanges the copies of the signed MOU with Srinath Abesinghe, Director – CB Regional Development Department. Deputy Director of CB’s Regional Development Asoka Senanayaka, Senior Asst. Director - Keerthi Dunuthilaka, Asst. Director - M.M. Theseem and HDFC Chief Manager Credit - Manjula Dissanayaka and HDFC Manager Microfinance - Anura Dissanayaka are also in the picture.
improving productivity of the dairy farmers to convert existing subsistence level to the commercial level. The CSDDLS will facilitate an individual, a group or a registered company in the sector and under this scheme, with the maximum loan facility available being Rs. 25 million. Loans could be obtained from the 33 branches of the HDFC Bank located islandwide.
The new loan scheme covers the purchase of cows, establishment of cattle sheds, buildings, irrigation systems (sprinkler, pipeline), construction of well or agro-well, fodder cultivation, establishment of new farms, farm development, construction of bio gas units, expansion of existing farm, production of dairy based products or milk processing, purchase of machinery and equipment such as tractor, water pump, refrigerator, cream separator, milking machine and grass chopper, freezer trucks for milk transportation and storage to preserve milk and milk-based products, any other innovative activity directly related to dairy development or promoting the culture of drinking liquid milk and other innovative methods recommended by veterinary surgeons or livestock officer for improvement of production and quality of products. “HDFC’s primary objective has always been to serve lower and middle income groups to meet their needs of housing finance and allied services. With the amendment of the HDFC Act in 2011, HDFC was able to diversify business operations. Under the new broader operations mandate, the bank entered the leasing, micro finance, SME and agriculture markets and finance.
The micro credit and SME credit lines have effectively leveraged HDFC’s past experience in working with rural and urban populations for more than 30 years since the bank is more focused in providing housing finance to low and middle income segments in the country,” it said.