SBI to sanction Rs 20,000 cr for project finance next fiscal (Financial Express)

SBI to sanction Rs 20,000 cr for project finance next fiscal
(Financial Express)
Posted online: Friday, March 18, 2005 at 0036 hours IST

MUMBAI, MARCH 17: The State Bank of India (SBI) is planning to sanction Rs 20,000 crore for
project finance in the next financial year to take benefit of the growing credit demand for
infrastructural projects.

“This year (2004-05), we expect sanctions of Rs 10,000 crore in project finance to our existing
good quality customers. This will help us take benefit of the growing credit demand for funding
projects,” SBI chairman AK Purwar said at an investor bankers meet here.

Last year, the sanctions for project finance stood at Rs 1,000 crore, Purwar added. “Though there
is an issue of raising long-term funds to provide assistance for infrastructural projects involving
long gestation periods, the bank has adequate resource base to take care of these aspects,”
Purwar said.

SBI has also launched deposits with high interest rates and having maturity in excess of five
years, the bank’s chairman said. Speaking on the capital regime plan, Purwar said the bank is
looking at prospects to raise additional capital in the range of Rs 3,000-4,000 crore from the
capital market in the next fiscal to support its credit growth and as preparation for adherence to
the Basel II norms.

“Over the past few years, our profit levels have been able to meet the bank’s capital
requirements. But with the current spurt in the credit growth, this will not be possible. To overcome
this, the bank will raise additional capital close to Rs 3,000-4,000 crore to meet the capital
requirement and adhere to basel ii norms,” Purwar added.

ATMs to touch 5,000

Meanwhile, SBI is set to cross the the 5,000 mark in the number of ATMs installed in the country.
The 5,000th ATM would be launched by the bank chairman AK Purwar at Hyderabad, SBI
deputy general manager (Vijayawada) NV Surayanarayana said. A special branch for business
process engineering would soon be in operation which would provide more facilities to different
sections of customers, he said.