Mumbai, July 20: Union Bank of India and Mahindra Shubulabh Services Ltd (MSSL), a wholly-owned subsidiary of Mahindra & Mahindra, have joined hands to develop contract farming in the country. As per their memorandum of understanding signed on July 16, they would provide crop finance to farmers undertaking contract farming with them, the bank informed the Stock Exchange, Mumbai, on Saturday.
MSSL through its Mahendra Krishi Vihars (MKVs) in 59 districts of 11 states and Union Bank, which is at presently covering 18 districts, would develop the contract farming operations, it said.
The priority sector credit of the bank as of March 2003 stood at Rs 11,764.48 crore which constitutes 47.90 per cent of net bank credit well ahead of the stipulated benchmark of 40 per cent set up by the Reserve Bank of India, it added. Bureau Report