HDFC Bank is set to foray into project financing in a bid to tap opportunities in core sector.
This is the first time that the bank is going for long-term project financing.
Also at the same time, the bank is all set to kick-start its first international full-fledged branch in Hong Kong by this month end. Confirming the development, Harish Engineer, executive director, HDFC bank, said, ?We are getting into long term project financing particularly in power and road sectors. We were not into project financing until recently. The process has just started. It will take minimum 3 years to get streamlined. However, the maiden allocation has not happened yet.?
The bank plans to get into project financing that can be typically of 5 years or 10 years. ?Only after three years, we will come to know the clear picture . There are also so many companies, which are getting into expansion mode in sectors like fertiliser, and manufacturing,?? said Engineer.
The bank will also participate in the consortium for project financing but will have its ?own assessment of the project before participating in these projects.
?Our investment banking arm department will start working on such project assessment in the next 3-4 months, Engineer said.
The bank has plans to extend its international presence. ?We will be shortly opening a full-fledged branch in Hong Kong by the end of October, 2010. When the branch becomes fully operational we may gear up for more international branches,? Engineer said.