Infra projects concern for banks

KOLKATA: There could be some concern about financing large infrastructure projects as the Reserve Bank of India’s new framework related to “large exposures” proposes to reduce bank exposure to large corporate entities.

“There could be some concern for financing large infrastructure projects particularly greenfield projects. New framework from RBI suggests that from April 2019, for any entities with borrowing of Rs 10, 000 crore from banking indus- try, banks can only finance 50% of the additional financing requirements. The rest (of requirements) has to be raised from either equity or market borrowing,” said State Bank of India’s Managing Director (Compliance & Risk) P.K. Gupta.

In a discussion with RBI on Friday, bankers suggested that India’s apex bank should look at it, Gupta said on the sidelines of a Banking Summit organised by Indian Chamber of Commerce and Industry in the city of joy.