HDFC Bank has signed a ‘Master Inter Bank Credit Agreement’ with Export Import Bank of Korea for a USD 300 million line of credit.

 The pact was signed by the two entities at GIFT City in Gujarat's capital Gandhinagar on Wednesday, HDFC Bank said in a release.

This agreement will help HDFC Bank raise foreign currency funds which it would extend to Korea-related businesses.

 "This line of credit would be utilised by HDFC Bank towards funding requirements of companies having equity participation by Korean companies as well as companies having business relationship with Korean companies," the private lender said.

 It will also be utilised towards funding requirements of consumers for the purchase of cars manufactured by Korea related companies.

The pact is likely to promote and increase the HDFC Bank's business with Korean entities and products. The first drawdown under the programme would happen by May.

 "Our agreement with Korean Exim Bank will further strengthen and support trade and investment flows between India and Korea, which can potentially create more jobs in the country. We will pursue deals under this agreement and may look to expand the programme," said Arup Rakshit, Group Head, Treasury, Sales Analytics and Overseas Business of HDFC Bank.

The Export-Import Bank of Korea (Korea Exim Bank) is an official export credit agency of South Korea having a balance sheet size of close to USD 100 billion, which provides export-import and overseas investment credit to support Korean enterprises conducting business overseas.