Canara Bank has inked an agreement with Kochi Metro Rail for a loan of Rs 1,170 crore to Kochi Metro project. This is the largest loan offered by the bank, which is Kerala’s lead bank, to a single entity in the state. The loan, for a term of 19.5 years, will carry a floating interest rate of 10.80%. There will be a moratorium on repayment for seven years.
The Kochi Metro is a joint venture between the Centre and the Kerala Government, aims to find external funding of Rs 2,170 crore. Already, the French development aid agency AFD has signed an agreement with KMRL for advancing €180 million (around Rs 1,500 crore). The AFD loan is for 20 years, with a five-year moratorium.
The bank posted a fall of 15.79% in its net profit at Rs 610.83 crore for the quarter ended March 31, 2014, as compared to Rs 725.38 crore for the same quarter in the previous year. However, total income of the bank increased by 22.57% at Rs 11609.72 crore for quarter under review as compared to Rs 9471.57 crore for the quarter ended March 31, 2013.
