There appears to be impetus in many countries to set up state infrastructure banks

Given the change in many governments' role for the financing of infrastructure, many countries have revisited the question of whether they should establish state infrastructure banks (either state-owned or state-sponsored). Consequently, we have reviewed some of the existing state infrastructure banks and have summarized in Table 2 the range and impact of approaches that have been taken (see also Table 3). In the United States, the 2011 budget sets out plans for a US$4 billion National Infrastructure Innovation and Finance Fund.6 In the United Kingdom, the Liberal Democrat political party has also been calling for the establishment of the UK Infrastructure Bank.7

 

Table 3: State Bank of India lending amounts in FY 2008 and FY2009

Amount (Rs crores)

FY 2008

FY 2009

Growth (%)

Aggregate project
cost of projects
sanctioned

1,45,045

1,93,595

n/a

Aggregate debt
requirement

92,558

1,33,894

n/a

Of the above,
debt sanctioned
by SBI

20,195

25,854

28.0

Debt syndication

54,951

64,069

16.6

Source: http://www.statebank.com/.