IDBI has doubled its film financing exposure limit as it is getting a huge demand from corporatised film makers for formal funding.
The limit was increased to Rs 200 crore (Rs 2 billion) last month from Rs 100 crore (Rs 1 billion) set when the bank had begun financing film production in the year 2001.
"IDBI had kept a sectoral cap of Rs 100 crore for overall exposure to the film industry. After getting a good response from the film industry, this limit has been enhanced to Rs 200 crore," said Jitender Balakrishnan, executive director, IDBI.
Entry of more players into Bollywood coupled with increasing corporatisation of the film industry has seen a rise in demand for funds from IDBI.
"Most film production companies are family-owned and, therefore, rely heavily on informal sources. However, in recent times, some film producers like Mukta Arts Ltd, Pritish Nandy Communications Ltd, Padmalaya Telefilms Ltd, UTV and ZEE Telefilms Ltd have become corporatised and are able to raise