State Bank of India (SBI) and the Export- Import Bank of Korea (Korea Eximbank) today signed a loan agreement for a line of credit. Under this loan agreement, State Bank of India will avail a USD 200 million revolving line of credit from Korea Eximbank.

This line of credit (Interbank Export Loan) will be utilised by SBI to finance the foreign currency requirements of Indian companies importing Goods and Services from Korea.

On this occasion, P. Pradeep Kumar, managing director & group executive, corporate banking (CBG), SBI said that, ''Against the backdrop of India’s growing demand for capital goods to support growing infrastructure and capital expenditure requirement there is continuous increase in import of equipment and services from Korea. This Line of Credit will help SBI to arrange long term foreign currency funds to support financing needs of Indian corporates importing equipment and technical services from Korea. This strategic alliance among the two institutions is a significant step towards synergizing their strengths and supporting growing Korea-India bilateral trade relationship.''

On the occasion Yong Hwan Kim, chairman and president of Korea Eximbank, said that, ''The Interbank Export Loan Agreement with State Bank of India will pave the way for Korean companies to actively interchange and cooperate with Indian companies for India's medium- and long-term national projects. We will provide the fullest possible financial support to Korean and Indian companies for the successful cooperative partnership.''

Shares of the company declined Rs 6.55, or 0.4%, to settle at Rs 1,637. The total volume of shares traded was 124,667 at the BSE (Thursday).