Business Standard

RBI's draft provisions create a flutter

The new provisioning norms for infrastructure financing have set the cat amongst the pigeons

project financing, infrastructure financing
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Vinayak Chatterjee
The infrastructure financing world is abuzz with the Reserve Bank of India’s (RBI) draft provisions for infrastructure lending.

Even before the dust has settled, State Bank of India (SBI) has started altering its future loan agreements to cope with the potential impact of the RBI’s proposed guidelines on project financing. SBI has introduced a new clause allowing it to “pass-through” any additional costs from increased provisioning directly to the borrower —possibly signalling an expectation that the RBI may not significantly relax these norms.

Meanwhile, the Ministry of Road Transport and Highways is advocating the status quo on current project finance formats and
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First Published: Jun 06 2024 | 10:02 PM IST

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