Banks wants more hotel categories to get Infra status

HBL reported that Banks will be inclined to lend more to the hospitality sector as three-star and above category hotels located within cities with population of more than 10 lakh are likely to get infrastructure' tag, said a top banker.

Indian Overseas Bank Chairman and Managing Director M Narendra said once the hospitality industry gets the infrastructure status, then top-grade hotels will be eligible for long-term loans of 10-15 years duration. Currently, three-star or higher category hotels located outside cities with population of more than 10 lakh are reckoned as infrastructure projects for bank finance. The Government is considering tweaking the definition of infrastructure pertaining to hotels