IDBI Film Financing Book Tops Rs 97 Cr; 7 Projects On

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Mumbai, December 10: : With the latest loan sanction for Tinu Verma’s film ‘Baaz-A Bird in Danger’, cumulative sanctions of the Industrial Development Bank of India (IDBI) under film finance has touched Rs 97 crore even as seven films are in various stages of production, including three films from Rajshree banner alone.

"Tinu Verma’s ‘Baaz-A Bird in Danger’ was sanctioned Rs 3.4 crore. With this, we have sanctioned loans amounting to Rs 97 crore for 17 film projects so far, including two projects for which sanction were withdrawn later. Usually, our financing ranges from 40 to 50 per cent of the total production cost," an IDBI official told FE.

The three film projects under the ‘Rajshree’ banner financed by IDBI, which are yet to be released are high-cost ones starring Abhishek Bachchan, Hritik Roshan and Kareena Kapoor: ‘Main Prem Ki Diwani Hu’, ‘Hum Pyar Tume Se Kar Bhaiten’, and ‘Uff! Kya Jadu Mohabbat Hain’. Others in the early stages of production are Feroze Khan’s ‘Janashin’, Ramesh Sippy’s ‘Luch Na Kaho’, and Harry Baweja’s ‘Qayamat’, sources said. Sanctions to two film projects amounting to Rs 23 crore were withdrawn on perceived delay in their execution and at the request of the producers. Besides, Rs 23 crore financed for five projects was repaid by the borrowers after release of the films. With this, the outstanding loans under film finance portfolio is at Rs 52 crore at present, the sources said. At this level, the outstanding loans for films is at half of the ceiling of Rs 100 crore set for film financing by IDBI.

"We are only lending to film banners which are known for their professionalism and which have a track record for sticking to schedules", sources said. The films financed by IDBI and released so far are ‘Aankhen’, ‘Kuch Tum Kaho, Kuch Hum Kahen’ ‘Daddy’ (Telugu film), ‘Gunah’ (released in September 2002) and ‘Rishtey’ (just released), sources added.IDBI was the first institution to provide film finance after the sector was declared an industry in October 2000. The move has helped the industry to get loans at the rate of Rs 16 per cent per annum.

The conservative approach adopted by banks and financial institutions earlier had been forcing film producers to depend on underworld dons for financing at rates ranging from 36 per cent to 48 per cent per annum.