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Decision deferred on film financing by banks

Anurag Joshi in Bombay

The working group constituted by the Indian Banks' Association to suggest norms to be adopted by the commercial banks for lending to the film industry, in its meeting held here today, deferred finalising the guidelines.

IBA sources said that the members who attended the meeting asked for more time to study the draft proposals as its implementation has far-reaching implications of the loan portfolio of the banking sector.

''The next meeting will possibly be held in June to take a final decision on the proposals,'' an IBA official said.

Interestingly, Bank of Baroda chairman K Kannan, who heads the working group was absent from the meeting.

''The report, when finalised, will not be binding on banks. Banks will have the discretion to take decisions on financing the film industry, depending on their individual policies,'' the source added.

Thus, it will be left to the banks to decide whether they should insist on insurance cover for films before disbursing loans.

The meeting held today was attended by 12 members representing various banks. ''None of the six film industry representatives, who are on the working group, was present at the meeting,'' said the source.

UNI

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