[sbinews] SBI to fund core projects at 8.5-10% (Financial Express)

  • From: "Rajendra S. Pai" <rs.pai@xxxxxxxxx>
  • To: <sbinews@xxxxxxxxxxxxx>
  • Date: Thu, 14 Oct 2004 09:31:55 +0530

SBI to fund core projects at 8.5-10%
 The Financial Express
Published on October 13, 2004

MUMBAI, OCT 12:  The country's largest commercial bank, State Bank of India
(SBI) is deploying its funds in the infrastructure sector at sub-PLR
interest rates in the range of 8.5% to 10%. "We stick to this rate for our
infrastructural exposure which we expect to increase in the second half of
the current fiscal," said a senior official of the bank.

The bank, which is waiting for the financial closure of Reliance Energy and
six other projects of the National Highway Authority of India (NHAI), is
also planning to participate in the modernisation programme of airports. A
consultant may be roped in to prepare the blueprint for funding the
upgradation programme of airports.

"We are waiting for the upgradation plans of Mumbai and New Delhi airports
to kick start our airport finance programme," said the official. The bank on
Tuesday joined hands with Life Insurance Corporation (LIC) of India to
finance big-ticket infrastructure projects in the country and plans to
double disbursals in this sector, including power and roads, to Rs 4,000
crore next year.

The MoU to cooperate and coordinate in infrastructure financing was signed
by SBI Chairman Mr A K Purwar and LIC chairman Mr S B Mathur. Infrastructure
projects have a long gestation period and SBI could provide finance only up
to 10 years, said Mr Purwar. The MoU would help to overcome the
asset-liability mismatch with LIC acting as source for long-term funds.

Currently, SBI's exposure to infrastructure projects is close to Rs 27,000
crore and has already disbursed Rs 2,000 crore to road and power projects
against a sanctioned amount of Rs 6,000 crore this year, said Mr Purwar.

Mr Mathur said the MoU provides LIC a vehicle for increasing presence in
infrastructure through SBI's extensive network as well as appraisal and
monitoring skills. Asked about the arrangement for sharing of risks and
funding, Mr Mathur said risks would be shared in tune with the exposure
levels. SBI would get front-ended repayment while LIC could receive
back-ended repayments, he added.

Both SBI and LIC would seek more partnership to expand their infrastructural
exposure. On interest rate, Mr Purwar said he is waiting for the RBI's
signal in the forthcoming credit policy to take a view on interest rate.

Email From ""Rajendra S. Pai" <rs.pai@xxxxxxxxx>" was security checked by 3.93  
version of CxProtect(tm)
On: sify_mta at: 10:07:39, 14-Oct-2004 Thursday
Mailing list (sbinews@xxxxxxxxxxxxx) related information:

News/articles about SBI and Banking related matters published  in the print 
media, Internet etc will be circulated through this Mailing List. 

The messages in this list will help in improving awareness of SBI and its 
activities vis-a-vis the happenings in the Banking industry. This should be of 
help to all staff members of SBI, particularly those who are preparing for 
promotional written tests/interviews/group discussions. Subscription to this 
Mailing List is simple and FREE. Please check the procedure below. Please share 
this information with other colleagues/branches that could be interested in 
subscribing to this Mailing List. 

The messages circulated here should not be deemed to have the official 
endorsement of the SBI or any of its employees. The correct factual position 
may be ascertained from official sources. 

To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word 'subscribe' without the quotes in the subject of the email 

To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word  'unsubscribe' without the quotes in the subject of the email 

Archives (old messages) are available for viewing at:
Click on the month-year at the lower left corner to view messages posted during 
that month. 

This is an announcements/newsletter type mailing list i.e. only the Moderator/s 
can post messages to the list. 

This mailing list is maintained and moderated by Sri. R.S.Pai, currently 
working as Chief Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai. 
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities 

Other related posts:

  • » [sbinews] SBI to fund core projects at 8.5-10% (Financial Express)