FI sanctions shoot up in 8 months

The increase in sanctions and disbursements of IDBI were very sharp in the third quarter of 1997-98. Sanctions, during this period, increased by 177 per cent to Rs 6,290 crore and disbursements rose by 121 per cent to Rs 3,656 crore.

During the first nine months of 1997-98, IDBI sanctions rose by 70 per cent to Rs 17,223 crore compared to the same period of the previous year while disbursements rose by 31 per cent to Rs 9,985 crore during the same period. Bulk of the IDBI sanctions has been given to the power, telecom and ports sectors.

Another premier financial institution, ICICI also reported sharp increase in its sanctions and disbursements during the third quarter of 1997-98. During this period, sanctions increased by 182 per cent to Rs 6,745 crore and disbursements rose by 116 per cent to Rs 4,202 crore. During the first nine months of 1997-98, ICICI sanctions rose by 112 per cent to Rs 18,223 crore from Rs 8,593 crore compared to the same period of the previous year while disbursements rose by 46 per cent to Rs 10,929 crore from Rs 7,471 crore during the same period.

"IFCI, another leading financial institution, also reported good performance during the first half of 1997-98. Sanctions and disbursments increased by 40 per cent and 25 per cent respectively during this period," said the Centre for Monitoring Indian Economy (CMIE).

Sanctions of IDBI declined by 4.2 per cent from Rs 17,796 crore during 1995-96 to Rs 17,049 crore during 1996-97. However, disbursements grew by 6.9 per cent from Rs 10,693 crore to Rs 11,435 crore during the same period. IDBI is reportedly targeting a 20 per cent growth in sanctions and disbursements in 1997-98.