Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

SBI chief seeks new financial products to fund infra sector

Nov 25 2013, 05:21 IST
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SummarySBI has called for a need to introduce new products to finance the long-gestation projects.

With lenders experiencing stress on their infrastructure loan books, the head of country’s largest bank State Bank of India (SBI) has called for a need to introduce new products to finance the long-gestation projects, including refinancing the loans every five years.

“As we move forward, there is a greater need to device new products to fund infrastructure projects. This will be by means of new structures, such as 5×25 route (under which an asset gets refinanced every five years),” the newly-appointed chairperson Arundhati Bhattacharya told a capital markets summit here.

“Assets created for 35-40 years is being funded by 10-year money, which is all that commercial banks have. It is required to be paid back within an average span of seven years,” she said, adding that as a result of this, there is a “front-loading” of repayments.

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