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The Agri Business Group at Kotak Mahindra Bank has funded various agricultural and allied activities in many sectors across India. Our customers can now choose from an ever growing portfolio of products and services designed to meet diverse needs of the industry.

Know more about the objectives, growth and milestones achieved by the group below:

Kotak Mahindra Bank has extended its initial purpose of venturing into agricultural finance to meet the requirements of finance for individuals / entities involved in agricultural or its allied activities which would also help the Bank in meeting its priority sector lending requirements prescribed by RBI by servicing banking customers with a range of financial solutions. Primarily started to provide banking services to customers involved both directly and indirectly in the agricultural sector or its allied activities, Agri Business Group identified suitable products to meet the needs of niche activities in the sector as a whole. By ensuring lower default rates and other such business centric aspects, the group has seen good growth in its priority sector lending activities.

Our growth story

Starting from its inception in 2003, Agri Business Group provides core solutions to the Indian agricultural sector. Backed by a dedicated team of experts with deep Agri sectoral knowledge and understanding, Kotak's Agri Business Group offers products and services customized to the diverse needs of Agri value chain, ranging from farmers, aggregators, processors, traders & exporters located in non-metro locations across the country.

Consistency of presence

The Agri Business Group has maintained the core banking philosophy of providing customer service with a comprehensive array of services for customers. With an understanding of customer needs our products include retail loans (Tractor loan portfolio), Agri SME (Project loans, working capital facilities & funding against warehouse receipts) & Agri Corporate Funding to suit their business needs. Starting from small transactions, we have grown consistently in volume and variety of products across different agricultural businesses of all sizes.

Agri Finance Product Suite

The Kotak Mahindra Bank Agri Business Group's portfolio can be divided into 3 major segments:

  • Retail Agri finance - for financing products like tractor, vehicles & farm equipment loans & crop loans
  • Small and Medium size Agri finance - offering loans for large scale farming, Term loans for longer agri projects like floriculture, horticulture, dairy, fishery units, working capital funding for the agri traders & processors
  • Agri Corporate - facilitating finances for large corporate agro processors, exporters / importers, NBFCs & Micro finance-Institutions

Contribution to Kotak Mahindra Bank

The Agri Business Group aims at retaining a minimum of 20% of the total advances made by the Bank. In the FY 2009-10 Agri Business Group has managed to achieve this benchmark. With its performance in the past where Agri Business of the bank averaging a growth of over 75% in its first year itself, is now geared to grow at more than 25% annually.

The Agri Business Group of Kotak Mahindra Bank has serviced various sectors of the agricultural sector in India over the past few years. Agriculture being a core activity and a significant contributor to the Indian economy, we provide specialized financial solutions in the form of fund and non-fund based banking products.

These solutions meet needs for agriculture development and for the working capital or long term needs of the agro processing industry. In addition, we also provide liability and investment products for clients with free cash surplus.

Primary Agricultural Activities:

  1. Traditional crops and cash crops
  2. Dairy
  3. Poultry
  4. Fresh water and estuarine units
  5. Floriculture & greenhouse units
  6. Plantations for fruit & medicinal plant cultivation
  7. Timber / plywood
  8. Vineyards

Agro based Activities:

  1. Edible & non-edible oil
  2. Cotton ginning
  3. Agri commodities – Procurement, processing & trading (rice/paddy, wheat, cotton, spices)
  4. Grain milling
  5. Dal milling
  6. Dairy processing
  7. Confectionery & food processing
  8. Bee keeping and honey consolidation
  9. Fertilizer, seeds & agro chemical manufacturing
  10. Farm equipment, pumpsets, drip irrigation systems manufacturing & distribution
  11. Wineries & breweries

We also service allied Rural & agricultural activities in the form of:

  1. Rural infrastructure
  2. Rural and agri co-operatives
  3. Microfinance and gold loans

This is not an exhaustive list of activities funded by Agri Business Group.

The Agri Business Group of Kotak Mahindra Bank has seen a consistent growth from a Rs. 32 crores business to more than Rs.2375 crs over the past seven years. The increase in income for the annual year 2008-2009 itself was of 700%.

Our portfolio of financial services grew quickly over the initial years of our venturing into Agricultural finance itself:

  1. 2004 - Agri Project Finance
  2. 2005 - 2 new products in the form of Working Capital OD/CC, Warehouse Receipt Financing
  3. 2006 - Agri Corporate Finance
  4. 2008 - Microfinance

Here is a detailed diagram of how we have expanded over the years with the effect of being one of the few Indian agri finance banking businesses to achieve significant incomes continually over the years.

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