SIDBI to refinance Andhra Pragathi Grameena Bank for improved credit flow to MSMEs

APGB is the first Regional Rural Bank to enter into partnership with Small Industries Development Bank of India in Andhra Pradesh.

Small Industries Development Bank of India (SIDBI) and Andhra Pragathi Grameena Bank (APGB) entered into a partnership to extend refinance to the latter with an objective to facilitate an improved flow of credit flow to Micro, Small and Medium Enterprises (MSMEs) in the State.

The Memorandum of Understanding was signed and exchanged by APGB general manager P. R. Padgetwar and SIDBI, Vijayawada deputy general manager P. Rajendra Prasad, according to a release by SIDBI, Hyderabad deputy general manager Thota Vidyasagar.

As per the release, Mr. Padgetwar stated that APGB started banking operations in 2006 by lending to agriculture and self-help groups in rural areas and expanded its services to urban and semi-urban areas with more focus on lending MSME. “We are proud to partner with SIDBI as the first Regional Rural Bank (RRB) to participate in their vision of empowering the MSMEs,” he added.

Mr. Rajendra Prasad said SIDBI is playing a prominent role as an enabler in empowering the MSME ecosystem in the country and this arrangement with APGB will act as a catalyst in upscaling the MSME segment, especially in semi-urban and rural areas. We are delighted to partner with APGB and we will expand our refinance services to other banks as well, he said.