NEW DELHI, JULY 18: Six nationalised banks have committed over Rs 800 crore to Infrastructure Development Finance Corporation (IDFC) to finance projects through the takeout finance route, a top IDFC official said here."We have commitments from six banks to finance infrastructure projects through the takeout route," IDFC deputy managing director, Nasser Munjee, said.The banks included State Bank of Hyderabad, Indian Overseas Bank, Corporation Bank, Canara Bank, State Bank of India and Bank of India.State Bank of India itself had committed funds just over Rs 400 crore. Under the takeout finance route, IDFC will channelise the short term deposits of the banks to the infrastructure sector which has a gestation period of over ten years.While banks would finance the core sector projects for the first few years of the project, IDFC would takeover the financing after four to five years depending on the agreement signed between the banks.The pricing of this mode of finance also depends on variousaspects such as the risk nature of the project among other things.
