Pivdenny Bank Expands Lending to Agricultural Sector

For many years, Pivdenny Bank has been building strategic cooperation with companies in the agro-industrial sector, offering flexible and fast solutions for a wide range of financial needs. The agro-industrial sector accounts for 25% of Pivdenny’s total loan portfolio. This was highlighted by Serhii Kostrov, Corporate Business Director at Pivdenny Bank, during the panel discussion “Dialogue with the Market: Questions from Agrarians to Bankers” at the Forbes Agro Forum.

“Today it is easier for farmers to obtain loans than it was before the war. The industry shows solid profitability – $300-500 per hectare over the past few years – so banks are interested in financing it. There is enough liquidity, and the risk appetite is high,” said Serhii Kostrov.

He devoted particular attention to the issue of collateral valuation. He emphasized that at the beginning of cooperation, the bank always honestly informs clients about potential discrepancies in valuation, but this does not hinder the issuance of the required financing. The key factor is not the collateral value itself but the bank’s readiness to provide necessary amount to the client.

He also stressed that what matters most to the bank is the client’s profile – the stability of their business, transparency, credit and business reputation, and a clear repayment mechanism.

Speaking about the bank’s strategy in working with the agro-industrial sector, Serhii Kostrov noted that Pivdenny is currently focused on developing medium-sized businesses by increasing the number of clients and providing them with the best service: “We want to pleasantly surprise our clients by offering solutions that are truly useful and exceed their expectations.”

At the same time, improvements to internal bank procedures and expanded access to public data will allow loans to be issued in just a few days rather than weeks in the future.