As many as nine state-owned financial institutions have joined hands for consortium lending to infrastructure projects having worth over Rs.1,000 crore each.
These financial institutions are State Bank of India, Punjab National Bank, Bank of India, Bank of Baroda, Canara Bank, Union Bank, IDBI Bank, IIFCL and LIC, says a release from IDBI Bank.
The consortium would aim to speed up the sanction process and bring uniformity in the approach and terms of lending.
This would facilitate early financial closure of the infrastructure project, the release added.
Banks have been cautious while lending to infrastructure projects due to various reasons, including land issues.