The norms will come into force with effect from October 01, 2025, RBI said . In February, RBI Governor Sanjay Malhotra had said that project financing norms will get deferred by a year and are not to going be implemented before March 31, 2026.
SBI plans to complete the project within a year and will hire 'specialized professionals' to staff it, said Ashwini Kumar Tewari, a managing director at the bank.
Amitabh Chaudhry, MD & CEO, Axis Bank speaks exclusively to Moneycontrol on what lies ahead for the bank.
According to sources, the central bank may not budge on the demand by the industry to relax the 5 percent provisioning requirement. A few lenders are, however, hopeful that some leeway may come through on existing project loans.
RBI on May 3 proposed to lenders that they set aside higher provisions for under-construction infrastructure projects and asked them to ensure strict monitoring of any emerging stress
Public-sector lenders will be disproportionally impacted if RBI's guidelines are implemented, since they have a higher exposure to infrastructure loans.
While the bank is still open to lending opportunities in the infra space, it has reallocated the specialised staff to its larger wholesale banking vertical.
Sunita Sharma, MD & CEO of LIC Housing Finance told CNBC-TV18 that project finance segment grew strongly in Q2 and will continue to be the company's focus in future.
IRB Infrastructure Developers Ltd on Tuesday said its subsidiary has tied up Rs 1,400 crore funds to execute a project awarded by National Highway Authority of India.
The government has taken some measures over the past few years like re-schedulement of premia payment, shifting towards cash contracts, de-linking of forest from environment clearances and relaxation of exit clause for developers, etc.
India’s second largest private sector lender HDFC bank does not see project finance business scaling up in 2011-12. According to the bank’s executive director, this segment will not emerge as a major contributor to its corporate loan book. However, the lender is hopeful to post better loan book growth than the average industry growth.