Mumbai: Bank of Baroda (BoB) has entered into a memorandum of understanding (M0U) with India Infrastructure Finance Company Ltd (IIFC) for increased financial assistance to the entities involved in infrastructure development.
As per the MoU, both the parties would co-operate for providing resources and expertise in debt financing to enable quicker financial closure for infrastructure projects in the areas like power generation and distribution, road and bridges, telecommunication, ports and technology parks.
The bank will also provide a bigger basket of financing and other banking products and services towards this, Bank of Baroda informed the Bombay Stock Exchange in a regulatory filing.
The areas of co-operation in infrastructure projects would include credit appraisal, syndication of funds and co-financing. The two would also work together in enabling extension of non-fund exposure in the form of letters of credit, bank guarantees.
BoB would also provide additional banking facilities to IIFC such as cash management, treasury services and corporate accounts and any other areas in which the parties from time to time decide to work together.
The bank is also poised to sign life assurance and asset management joint ventures with European partners.
With 2,700 branches and 27 million customers, the country's fourth largest state-owned bank already had the infrastructure in place to sell its own insurance policies.