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OBC plans Rs 750 cr bonds for infrastructure funding
New Delhi, May 27: Following Reserve Bank decision to allow banks to raise long term funds, Oriental Bank of Commerce will soon tap the bond market to mop up Rs 750 crore to fund infrastructure projects.
New Delhi, May 27: Following Reserve Bank decision
to allow banks to raise long term funds, Oriental Bank of
Commerce will soon tap the bond market to mop up Rs 750 crore
to fund infrastructure projects.
"We will raise Rs 750 crore through bonds in 2004-05 to
enhance credit to infrastructure sectors along with housing
sector," OBC chairman B D Narang said.
He said the bank will fund corporate projects in sectors like steel and textiles, where there is a great demand for bank finance. "The government's announcement of five per cent interest subsidy for textiles sector has generated more demand for loans but we have kept our options open for other sectors provided it is profitable," Narang said. The thrust on infrastructure funding comes after RBI allowed banks to raise long term bonds and use the money for long-gestation infrastructure projects. The new Finance Minister P Chidambaram also outlined the Congress-led coalition government's plans of massive public and private investment in infrastructure, agriculture and manufacturing.
So far, infrastructure funding was mainly confined to term lending institutions like IDBI, ICICI, IFCI and IDFC.
Following ICICI'S reverse merger with ICICI bank in 2002-03, IDBI'S plans to convert into a commercial bank this year, and the proposed merger of IFCI with Punjab National Bank, the source for long term funding has virtually dried up.
Bureau Report
He said the bank will fund corporate projects in sectors like steel and textiles, where there is a great demand for bank finance. "The government's announcement of five per cent interest subsidy for textiles sector has generated more demand for loans but we have kept our options open for other sectors provided it is profitable," Narang said. The thrust on infrastructure funding comes after RBI allowed banks to raise long term bonds and use the money for long-gestation infrastructure projects. The new Finance Minister P Chidambaram also outlined the Congress-led coalition government's plans of massive public and private investment in infrastructure, agriculture and manufacturing.
So far, infrastructure funding was mainly confined to term lending institutions like IDBI, ICICI, IFCI and IDFC.
Following ICICI'S reverse merger with ICICI bank in 2002-03, IDBI'S plans to convert into a commercial bank this year, and the proposed merger of IFCI with Punjab National Bank, the source for long term funding has virtually dried up.
Bureau Report