The largest bank in the country SBI has called for a need to add new products to finance the long-gestation projects to refinance the loans every five years after the lenders experience pressure on their housing loan plans.

SBI is planning to fund infra projects in a larger way. The PSU is also looking into various options which include more focus on takeout finance, getting pension funds and investors who can invest for a longer period with low risk in the infra sector.

A majority of the infra financing is done by banks, which cannot access long-term money and hence, developers are forced to repay with a short period, even though the asset is created for the long term.

Assets developed for 40 years are being funded by 10-year money, which is that entire Banks have. It is required to pay back in an average of seven years which is apathy.

As a result there is a front loading of repayments by infra projects and the repayment for the projects is possible only on the notion of the economic growth and timely deliverance of projects.

Economic growth is at around half the prospective while the projects are not coming on steam due to a various issues.

It can be seen that major banks blame infra and allied sectors for the falling of their asset quality.

Gross NPAs stood at 3.9 pc as of March 2013 as against 3.5 pc pervious fiscal while net NPAs rose to 1.9 pc in FY13 from 1.6 pc a year ago.