NaBFID to start lending operations in Q1FY23, says Chairman K V Kamath

The National Bank for Financing Infrastructure and Development (NaBFID) will begin business by approving the first for the project in the first quarter of the new financial year (2022-23) beginning April 2022, said its chairman on Friday.

The vision is to see lending of Rs 3-4 trillion by the institution in next three years or so. The emphasis in funding will be on having the right tenor (period) and right price, said K V Kamath, chairman, NaBFID. The first approval would probably be in the first quarter of the next accounting year (FY23). Bank will need that much time to get chief executive and key staff on board. It is not appropriate for us to run this without that componence, added Kamath while virtually addressing the annual general meeting of Federation of Indian Chambers of Commerce and Industry (FICCI).

The DFI would have a chairman, two government nominees, and four whole-time directors. Whole-time directors will include a chief executive officer (CEO) and three other members.

Kamath said the new infra bank had got policies and framework ready in record time of 30 working days and was now working in technology identification. Many are helping create building blocks for the new organisation. For now, the new entity will work out of space at SIDBI House in Mumbai’s Bandra-Kurla Complex.

As for raising funds, the development institution will tap funds from domestic and global markets as well as approach multilateral institutions. In tapping markets, it will look at insurance and pension fund ecosystem, a vibrant space growing at rapid pace, he said.

The DFI will be set up with an initial paid-up capital of Rs 20,000 crore so that it can leverage around Rs 3 trillion from the markets in a few years to provide long-term funds to infrastructure projects as well as for development needs of the country. The government will give Rs 5,000 crore as grant to the institution in the form of reimbursement on taxes paid on the bonds issued by the institution.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link