Bank of Baroda Partners with NABARD to Boost Food Processing Sector Financing
Mumbai / New Delhi, January 31, 2026 – In a significant step to support the growth of India’s food processing industry, Bank of Baroda has signed a Memorandum of Understanding (MoU) with NABARD (National Bank for Agriculture and Rural Development) to facilitate working capital finance for borrowers who have availed term loans under the Food Processing Fund.
Key Highlights of the Partnership
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The MoU was signed by Shri Shajan Babu V. B., General Manager, Bank of Baroda, along with Shri Pushpas Pandey, Chief General Manager, NABARD, and Shri Vadivel Esakkimuthu, General Manager, NABARD.
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The collaboration aims to provide easier access to working capital for food processing enterprises, enabling them to optimize operations and scale production efficiently.
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Bank of Baroda will leverage its extensive branch network and banking expertise, while NABARD brings specialized support for agricultural and rural financing.
Why This Matters for the Food Processing Sector
India’s food processing industry is a critical driver of employment, agricultural growth, and export potential. By providing tailored working capital solutions:
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Small and medium enterprises can expand production and distribution capacity.
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Businesses can maintain liquidity while repaying term loans.
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The partnership promotes sustainable growth and financial inclusion in rural and semi-urban areas.
Statements from Officials
Shri Shajan Babu V. B., General Manager, Bank of Baroda, stated:
"Through this partnership with NABARD, we aim to empower food processing enterprises, enhance their growth potential, and strengthen India’s food processing ecosystem."
Shri Pushpas Pandey, Chief General Manager, NABARD, added:
"This collaboration demonstrates our commitment to supporting innovative financing solutions for the agricultural and food processing sectors."
Looking Ahead
The MoU is expected to benefit a large number of food processing borrowers across India, especially small and medium enterprises (SMEs). By enabling smoother working capital access, the partnership strengthens the link between agricultural production and industrial processing, supporting the government’s vision of doubling farmers’ income and boosting Make in India initiatives.