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Our Bureau

Plans to enhance financing for core sector

CO-ORDINATED LENDING: (From left) Mr T.S. Narayanasami, CMD, Indian Overseas Bank; Mr Vinod Rai, Secretary, (Financial Sector), Ministry of Finance; and Mr Rakesh Singh, Joint Secretary (Department of Banking) Ministry of Finance; and Mr S.S. Kohli, CMD, India Infrastructure Finance Company Ltd, at a press conference in the Capital on Thursday. — Ramesh Sharma

New Delhi , Dec. 7

Indian Overseas Bank (IOB) and India Infrastructure Finance Company Ltd (IIFCL) have signed a memorandum of understanding (MoU) to provide long-term funds to the infrastructure sectors.

The MoU will help the bank to actively take up infrastructure financing in the coming days. With infrastructure financing becoming a preferred area for many banks, IOB is now looking to enhance its presence in this activity.

"The MoU facilitates sharing of expertise gained by both the institutions for mutual benefit. It will facilitate identification and lending to sunrise industries in the infrastructure sector and provide necessary impetus for infrastructure financing and for building up of a qualitative credit portfolio," Mr T.S.Narayanasami, Chairman and Managing Director of IOB said here on Thursday.

Mr Narayanasami said that the MoU was valid for one year and that it would be renewed after a year. He said that IOB would identify business opportunities in infrastructure projects and would do appraisal with reference to technical and commercial viability of infrastructure projects to be financed in coordination with IIFCL.

More in queue

The IIFCL Chairman and Managing Director, Mr S.S. Kohli, said this was the fifth MoU that was signed by the company. He said banks were coming forward aggressively to finance infrastructure projects and that things were moving in the right direction as far as infrastructure financing was concerned. "IIFCL will also sign a MoU with Andhra Bank next week and three more banks in Bangalore soon," he said.

Mr Vinod Rai, Secretary, Financial Sector, said that building of physical infrastructure would not be held up for want of resources. "We have the wherewithal to raise the required resources. There will be no shortcomings ," he said. Mr Rai highlighted that IIFCL's performance was above expectations and pointed out that the company was incorporated only in January this year.

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