The Industrial Investment Bank of India has so far sanctioned over Rs 1,400 crore, the bulk of which is in the form of term loans to various top corporates in the country.
The companies to which the financial institution has sanctioned term loans include ITC (Rs 50 crore), Kesoram Industries (approximately Rs 25 crore), Indal, BPL, ITC Bhadrachalam, Zuari Agro, Vaam Organics, Mukand Steel and Kalyani Steel.
The financial institution has also got a deferred payment guarantee arrangement of Rs 40 crore with the upcoming Rs 5,170 crore Haldia Petrochemical project, which in all likelihood will be converted into a term loan.
The financial institution is also believed to be negotiating with the project promoters for another term loan.
The size of the loan is yet to be fixed. Such term loans are indicative of the fact that the institution has come a long way from being a bank for nursing sick companies.
IIBI is close to finalising a foreign line of credit, and is in the process of negotiating with two European and one Indian bank for this facility. The meetings have been held up due to the elections.
IIBI chairman-cum-managing director, G Goswami, said they hoped to finalise the arrangement after the polls. Having this facility will bring the IIBI on par with other financial institutions such as the IDBI, ICICI and the IFCI in terms of the number of facilities available.
Industrial Investment Bank of India recently received overwhelming response to its bonds issue. Subscriptions exceeded Rs 380 crore where as the approved amount was Rs 105.5 crore.
Most of the subscribers were public sector banks, cooperative banks and government organisations.
