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State Bank of India is not looking to sponsor an infrastructure debt fund (IDF), a new vehicle that was mooted in Budget 2011-12 to enhance the flow of long-term debt for funding infrastructure development.
"As of now, we are not (planning to sponsor an infrastructure debt fund). But we don’t need that. Because on the infrastructure side, on our books itself we are lending so much to the leading companies whether it be in ports or telecom or power sector. So we don’t see a shortfall or inadequacy in lending to infrastructure", Mr Pratip Chaudhuri, SBI Chairman said.
Currently, SBI’s total infrastructure outstanding stood at Rs 77,000 crore in end June 2011. Out of this Rs 77,000 crore, the power sector accounted for Rs 37,000 crore, roads about Rs 9,000 crore , telecom about Rs 10,000 crore, ports about Rs 3,000 crore and educational institutions about Rs 4,000 crore.
"It is not right for us to paint any sector with a broad brush", Mr Chaudhuri said when asked whether SBI will be cautious in sanctioning credit to any infrastructure sector during this financial year. "We will be selective not sector-wise, but company-wise", he added.
The Finance Ministry had on June 24 come out with the guidelines allowing IDFs to be established either as trusts or as companies. The guidelines stipulated that banks and financial institutions can only be sponsors of IDFs and that they cannot directly invest in the bonds issued by these funds.
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