Iibi Goes Realty-Hunting In Calcutta

The Industrial Investment Bank of India (IIBI) is in the process of looking at tracts of prime real estate for setting up its new corporate headquarters at Calcutta.

According to senior official sources, the only financial institution which is headquartered in Calcutta needs an average of 35,000 square feet of covered area at the outset for, for commencing construction work. Till now, however, the location has not been decided upon, and the final assessment and costs have no been arrived at. Sources point out that they will try to stick to the heart of the city, which constitutes the main business hub. Only after the location is fixed, a proposal to this effect will be put forward before the board for approval.

The provision for setting up an independent headquarters for the financial institution was stated in the annual budget statement of finance minister P Chidambaram for the year 1996-97. At present, the institution occupies one floor of ANZ Grindlays Bank at the busy Dalhousie area in Calcutta.

The IIBI is looking forward to healthy financial results at the end of this fiscal with its disbursements expected to touch the four figure mark for the first time. According to FI sources, the disbursements during the current fiscal, have already exceeded Rs 950 crore.

The financial institution which got corporatised last year, has, during the course of this year added on an impressive list of top corporates in which it has picked up exposure in the form of term loans. The corporates includes Godrej, ITC, BPL, Balrampur Chini, Kesoram Industries and ITC Bhadrachalam.

The institution which has a history of nursing ailing industries back to health, has chalked out a strategy for shaking off its nursemaid image by targetting a blue-chip clientele.While its corporatisation has helped boost its image, it was striving to become a full-fledged FI since 1991, when the government put a stop to underwriting losses of BIFR cases. Once the government props were removed, the institution went ahead with preparing revival packages without funding them.

It is believed that nowadays due to the changed nature of IIBI, to revive sick companies, it becomes the responsibility of the banks and FI s who have large exposures to infuse funds for the healthy survival of the company.