SBI exposure limit exceeds in 3 majors

Borrower

Exposure Limit

Sanctioned
(peak level)

Period during which limit exceeded

Position on
31-Mar-05

Indian Oil Corp

3,382

7,812

Apr 2004 to Mar 2005

4,883

Reliance Industries

3,382

4,666

Apr 2004 to Mar 2005

3,699

HDFC

3,382

3,985

Oct 2004 to Mar 2005

3,984

According to the RBI, a bank can lend up to 15 per cent of its total capital to a single borrower and up to 20 per cent if the funding is towards infrastructure.  In the case of a group borrower, a bank can lend up to 40 per cent of the total capital to a group and up to 50 per cent if the funding is towards infrastructure.  These limits can be raised by an additional 5 per cent at the discretion of individual bank boards. However, this is provided that the borrower is ready to comply with the bank