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    Question

    A bankтАЩs exposure to steel sector is already 18% of

    total advances against internal cap of 15%. A new steel project proposal of тВ╣300 crore is otherwise financially sound. What should be the policy-driven decision?
    A Sanction fully due to good project Correct Answer Incorrect Answer
    B Sanction at higher interest Correct Answer Incorrect Answer
    C Reject due to sectoral exposure breach Correct Answer Incorrect Answer
    D Sanction after syndication Correct Answer Incorrect Answer
    E Defer for six months Correct Answer Incorrect Answer

    Solution

    To control concentration risk тЖТ share exposure through syndication.

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