Banks rake in big bucks on shipping, port sector boom

Banks rake in big bucks on shipping, port sector boom
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First Published: Mon, Mar 19 2007. 08 04 PM IST
Updated: Mon, Mar 19 2007. 08 04 PM IST
PTI
Mumbai: Upbeat over Rs55,000 crore expansion expected in the shipping and port sectors in the next few years, Indian banks, which have already lent $2 billion (Rs8,784 crore), expect big business from them.
“Indian banks have already lent about $2 billion to the two sectors this fiscal. We expect the boom in the two sectors to last for the next five years,” a top public sector bank official said.
The country’s largest commercial bank State Bank of India and the largest private sector bank ICICI are the two major players lending to these sectors.
With the government announcing a Rs55,000 crore expansion and modernisation under its National Maritime Development Programme, Indian banks scent a huge business opportunity here.
This financial year has seen lots of announcements by the two sectors.
The Mumbai Port Trust has announced plans to build a Rs1,800 crore offshore container terminal.
The Jawaharlal Nehru Port Trust, which handles over 50% of the country’s container cargo traffic, plans a Rs3,000 crore fourth container terminal this year.
Varun Shipping, which was looking to raise capital from the Singapore Stock Exchange, decided to raise capital locally because of volatility in world stock markets in May.
Mercator Shipping Lines also plans $1 billion expansion by diversifying into ship building.
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First Published: Mon, Mar 19 2007. 08 04 PM IST
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