The Hindu : Business : IIFC enters into pact with IOB

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Friday, Dec 08, 2006
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IIFC enters into pact with IOB

Special Correspondent

The institution to tie up with three more public sector banks

— PHOTO: SHANKER CHAKRAVARTY

AIMING HIGH: T. S. Narayanasami (left), CMD, IOB, exchanging documents with S. S. Kohli (right), CMD, IIFC. Vinod Rai (second from left), Secretary (Financial Sector), Union Ministry of Finance, looks on.

NEW DELHI: The India Infrastructure Finance Company (IIFC) on Thursday signed a Memorandum of Understanding with the Chennai-based Indian Overseas Bank to jointly fund infrastructure projects. This was the fifth such tie-up for IIFC, which has already entered into similar agreements with Oriental Bank, Indian Bank, Corporation Bank and Infrastructure Leasing and Financial Services (IL&FS).

IOB Chairman T. S. Narayanasami said his bank would identify business opportunities and do project appraisal, while IIFC would bring in the expertise and funding. IOB would also provide cash management and treasury services to IIFC, he said.

According to IIFC Chairman S. S. Kohli, the company is also likely to sign an MoU with Andhra Bank next week. In addition, it will be tying up soon with three more public sector banks — Canara Bank, Vijaya Bank and Syndicate Bank — for infrastructure funding. He said the institution expected to sanction about $1.5 billion by March next.

Sanctions Rs. 5,500 cr.

It had already sanctioned Rs. 5,500 crore to 32 projects over the last 11 months since it was set up. Of the 32 projects, he said, 23 were in the roads sector, five in the power sector, three in ports development and one airport project in Mumbai.

It was also in talks for participating in the funding of another airport, he said.

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