SBI, IDFC may tie up for Rs 5,000 crore support

NEW DELHI, Sept 17: State Bank of India (SBI) will tie up with Infrastructure Development Finance Corporation (IDFC) for a Rs 5,000 crore...

NEW DELHI, Sept 17: State Bank of India (SBI) will tie up with Infrastructure Development Finance Corporation (IDFC) for a Rs 5,000 crore support to meet a possible repayment crisis on the resurgent India bonds (RIBs).

"The tie-up is a sort of insurance to meet a possible borrowing and lending mismatch arising out of RIB repayments," SBI chairman M S Verma told reporters at the international banking conference today.

He said SBI had already tied up with IDFC for Rs 400 crore support after five years. As per the arrangement (known as take-out financing) there would be no obligation on SBI to take the funds from IDFC. "We are confident of meeting the repayment requirements of RIBs as our savings account itself grows by Rs 10,000 crore per annum," he said.

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The SBI chief said the bank was getting a spread of 1-1.5 per cent on the RIB funds, including the cost of foreign exchange management. He said there were requests from other financial institutions and banks for funds from the RIB proceeds.

"We haverequests from Power Finance Corporation, Powergrid Corporation, IFCI, ICICI and others for RIB funds," Verma said adding that the funds would be allowed to be deployed only in the infrastructure sector. Verma said SBI would part with Rs 6000 crore from RIB proceeds to 46 collecting banks of the RIB funds for lending to the infrastructure projects.

The RJD’s key face and Leader of the Opposition (LoP) Tejashwi Yadav, party supremo Lalu Yadav’s son, will again contest from his stronghold Raghopur.

Amid Mahagathbandhan crisis, RJD unveils list of 143, drops 36 MLAs, focuses on ‘M-Y’

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The RJD, lead player of the Mahagathbandhan, released its full list of 143 candidates for the November Bihar Assembly elections. Its key face Tejashwi Yadav will contest from Raghopur, and 41 sitting MLAs have been renominated. The party has dropped 36 sitting MLAs and fielded young leaders, signaling a bid to consolidate its core Muslim-Yadav vote base. The Congress has fielded 60 candidates.

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