SBI steps up NPA plans, not to fund project finance

Rationalisation of Banks

In a bid to curb the rising menace of Non-Performing Assets (NPAs), public lender State Bank of India (SBI) has decided to stop funding the firms seeking project finance.

India’s largest lender has said that the interest payment cannot be left pending till the project starts generating any revenue.

In case of infrastructure loans, the repayment period is generally high and the chances of the progress getting hindered are usually high. Ironically, over Rs 8 lakh NPAs in the country are accredited to the pending infrastructural projects.

Reportedly, most banks are resisting the idea of funding infrastructural projects for keeping a strong hold on the NPAs. This move can add greater adversity to the already grim scenario prevailing in the real estate industry.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the BFSI industry. Join Us for 4th Elets BFSI Leadership Summit, Mumbai and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.