GIM: SyndBank to extend credit of Rs 6,000 cr

The Manipal-headquartered public sector lender, Syndicate Bank, is ready to extend credit of Rs 6,000 crore and offer other banking facilities to select investors whose projects get approved at the Global Investors’ Meet (GIM), being organised by the Karnataka government on June 3 and June 4.

The bank will sign an MoU with the state on June 3, 2010, the inaugural day of the GIM.

In a letter to Murugesh R Nirani, minister for large and medium industries, Basant Seth, CMD, Syndicate Bank said, “We will be happy to sign an MoU with the government of Karnataka for extending loans and other banking facilities to select investors.”

In addition to Syndicate Bank, as many as 17 major banks and financial institutions have confirmed their participation in the event. These institutions have agreed to sign a memorandum of understanding (MoU) with the state towards their willingness to extend credit to industrial projects being approved at the two-day event, Nirani said.

“The main highlight of GIM this year is the participation of so many banks. We are bringing the banking institutions and the investors on a common platform which will be mutually beneficial to each other,” Nirani told Business Standard.

The Syndicate Bank has indicated that it would extend credit facilities ranging from Rs 100-1,000 crore to certain companies where projects have already been given an in-principle approval by the state.

The bank has expressed its willingness to take an exposure of Rs 500 crore each in the case of ArcelorMittal India Ltd, which is investing Rs 30,000 crore and Zuari Fertilizers & Chemicals Ltd, which is investing Rs 4,585 crore. The bank is ready to finance Rs 1,000 crore each to Mangalore Refinery and Petrochemicals Ltd and GAIL (India) Ltd, Rs 800 crore to Rajashree Cement, a unit of Grasim Industries Ltd. It has proposed to invest Rs 300 crore each in Wipro Ltd, Relogistics Infrastructure Ltd and Shree Cement Ltd.

Apart from Syndicate Bank, other Karnataka-based banks like Corporation Bank, Canara Bank, Vijaya Bank and State Bank of Mysore have confirmed their participation. “We are ready to lend to any technically and financially viable project approved at the GIM as per the exposure norms,” Balakrishna Bhat, chief general manager, Corporation Bank said.

Other banks that would participate in the event include Axis Bank, IndusInd Bank, IDBI Bank, Union Bank, Central Bank of India, State Bank of India, IFCI among others.