No cap on bank lending to sector, RBI says

The Reserve Bank of India has not mandated any sectoral exposure limits on banks, and hence, banks should not say that having hit the limit for the power sector they are unable to lend to the renewable power sector. Banks may have their own internal sectoral exposure limits, but the RBI has not imposed any such limits, according to Dr K.C. Chakrabarty, Deputy Governor.

It is however true that the RBI stipulates lending limits with respect to borrowing entities, but there is nothing sector-wise, he said.

Dr Chakrabarty said in response to a query that players in the renewable-energy industry are finding it difficult to raise loans because banks say they have exhausted their ‘limits’ by lending to thermal power projects.

 

Source: BL

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shivanshtyagi

Mechanical engineer with experience in Power Plant maintenance , operation and auditing for ISI marked products. MBA in Power Management from National Power Training Institute, Faridabad. Working as Consultant for Bridge to India Pvt. Ltd. Expertise in: 1) Power sector regulations 2) Financial Modelling 3) Project Development solar PV plants 4) Strategic consulting 5) Report writing

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