There are prudential limits on single and group borrower exposures as per which banks are allowed as on date, to lend up to 15 per cent of capital funds to a single borrower and up to 40 per cent of capital funds to a borrower group.
This can be increased by an additional 5 per cent and 10 per cent, respectively for lending to infrastructure. In addition, banks have been allowed to consider enhancements in exposures to a borrower (single as well as group), in exceptional circumstances, up to a further 5 per cent of capital funds, with the approval of their Boards.