New Delhi: Punjab National Bank has entered into an MoU with ILFS Cluster Development Initiative Ltd in order to provide an impetus to financing of various industrial infrastructure projects in the country.
KC Chakrabarty CMD PNB, H Shankaran, MD IL&FS and V K Murthy, chairman National Competitiveness Council
The MOU was signed on 10June in New Delhi in the presence of Dr KC Chakrabarty, chairman and managing director, PNB, Hari Shankaran, MD, IL&FS and Ramesh Bawa, MD, IL&FS Financial Services Ltd.
According to Dr Chakrabarty, credit to small and medium enterprises from the bank was to the tune of Rs18198 crore. The bank has been supporting the SME sector by extending credit on liberal terms.
There is no margin money requirement for loans up to Rs2 lakh under SME advances. The bank is extending loans up to Rs50 lakh to micro and small enterprises without third party collateral security under the credit guarantee scheme of CGTMSE.
Under the MoU, PNB will finance industrial infrastructure projects that fall under the manufacturing sector like developing common infrastructure facilities (effluent treatment plants, hazardous waste disposal, water supply, greenfield industrial parks, upgradation of existing industrial estates, quality control labs, design centres).
Apart from common facilities/ industrial park infrastructure, the bank will also finance SME units that are likely to come up in these industrial parks for their various credit needs. The term loans for fixed assets shall be extended apart from the working capital loans for their operational needs.