ADB, Standard Chartered Sign Agreements To Boost Supply Chain Finance In India

New Delhi, Jun 4 (KNN) The Asian Development Bank (ADB) and Standard Chartered Bank have entered into two agreements aimed at strengthening supply chain finance in India through risk-sharing mechanisms covering both US dollar and rupee-denominated transactions.
 
According to an ADB statement issued on Wednesday, the partnership includes a risk participation arrangement through Gujarat International Finance Tec-City (GIFT City) for US dollar transactions and a partial guarantee facility agreement for domestic rupee transactions.
 
The agreements were signed last week by ADB Vice-President Bhargav Dasgupta and Standard Chartered Bank India and South Asia Chief Executive Officer P D Singh, reported PTI.
 
Dual Agreements To Expand Trade Finance Access
 
ADB said the arrangements are designed to improve access to trade and supply chain finance, supporting businesses in managing working capital requirements, strengthening supply chain resilience and participating more effectively in domestic and international trade.
 
The multilateral lender noted that access to trade finance remains a major challenge for many businesses, creating financing gaps that commercial lenders alone have been unable to fully address.
 
Risk-Sharing Framework To Support Supply Chains
 
Through the partnership, ADB will extend its risk-sharing capacity across both offshore and onshore segments of the Indian market to facilitate greater flow of trade and supply chain finance.
 
A key focus of the collaboration is distributor financing, an underserved segment of supply chain finance. ADB said this marks its first engagement in distributor finance within India.
 
SMEs Expected To Benefit From Working Capital Support
 
The arrangement is expected to improve access to working capital for downstream participants in supply chains, particularly small and medium-sized enterprises (SMEs), which play an important role in supporting domestic trade and industrial activity.
 
ADB said the initiative aligns with its broader objective of promoting inclusive economic growth and deepening financial access across Asia and the Pacific region.
 
(KNN Bureau)