Karnataka Bank has entered in to memorandum of understanding (MOU) with VST Tillers Tractors for financing farmers for purchase of tractors, tillers and farm machineries.

The finance will be extended under Krishik Sarathi scheme of the Bank VST Tillers Tractors has nominated Karnataka Bank as a preferred financier for extending finance to farmers for purchase of tractors, tillers and farm equipments. The company will offer special discount to the farmers who will purchase the tractor and other equipments under this MOU with Karnataka Bank.

"This is one more initiative from Karnataka Bank which will help small and marginal farmers to purchase Tillers, small tractors and farm equipments which directly help the farming community to mechanise their farm operations," said P Jayarama Bhat, managing director & CEO of the Bank.

Shares of the company declined Rs 2.55, or 1.89%, to trade at Rs 132.10. The total volume of shares traded was 78,436 at the BSE (12.07 p.m., Friday).