State-run banks may follow RBI norms for IT lending

BANGALORE, Oct 26: Public-sector banks are likely to seriously implement the new Reserve Bank of India guidelines on lending to informati...

BANGALORE, Oct 26: Public-sector banks are likely to seriously implement the new Reserve Bank of India guidelines on lending to information technology (IT) and computer software companies. Banks are now in the process of identifying new enterprises in this field as potential clients, particularly in Karnataka, according to Syndicate Bank chairman and managing director K Krishnamurthy.

Krishnamurthy was speaking at the 10th meeting of the State Level Export Promotion Committee (SLEPC) here on Monday. He further said this is a unique opportunity for banks to expand their export-credit portfolio.

The RBI has recently issued policy guidelines to scheduled commercial banks for extending working capital support to the IT and software industry. A limit of Rs 10 crore will be considered apart from the past track record of the borrower enterprise. Krishnamurthy said innumerable queries and feedback were coming in from the IT and software sector, particularly in Bangalore, which would be valuable for banks beforeany further policy consideration was made.

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The SLEPC forum was also used to discuss other vital issues impinging exporters in the state. The meeting was convened to introspect and interact on factors causing negative trends in the exports sector and to set sector-specific strategies of corrective measures.

According to VP Baligar, commissioner of industrial development and director of industries and commerce in the state government, there is an urgent need to improve the infrastructure, particularly in export-promotion zones which in turn will improve both productivity and credit offtake in the export sector.

Bank are not the predominant lenders to the exporting community in the state. This is evident from the fact that during 1997-98, 32 banks in the state had a level of export credit of Rs 1,342.95 crore, which forms less than 6.50 per cent of the total credit to exports in the state. Several measures, including stepped up lending to the software sector, could improve the situation, Krishnamurthyadded.

Nepal Army chief steps in, ex-Chief Justice agrees to be interim head

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General Ashok Raj Sigdel successfully convinced former Chief Justice Sushila Karki to become the interim Chief Executive after violent protests led to the fall of the K P Sharma Oli government. He held talks with various groups and proposed an interim government to restore peace. Karki, with the support of the Nepal Army, will work towards delivering a new Constitution.

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