Banks may get to lend to NPA highway projects
March 8, 2016
In what may come as a major relief for the highway sector, the Reserve Bank of India (RBI) is expected to allow banks and financial institutions to lend o companies even if a project turns into a non-performing asset.
Sources said the indication came during a meeting between governor Raghuram Rajan and NHAI chairman in Mumbai. The RBI governor told Chandra that the central bank has come out with a circular, clarifying that a project becoming NPA will not result in choking of fund flow and it will not translate into lenders stopping loans, sources added. “We were told hat when any investment becomes NPA, the financial institutions have to provide additional funds for this. They need to deal with such project carefully rather than stopping release of loan. They will provide us this circular,” said an NHAI official.
One comment on “Banks may get to lend to NPA highway projects” Post your comment
cooking websites with recipes…
Banks may get to lend to NPA highway projects : Indian Tollways…