Centre infuses Rs 20k cr in NaBFID; BBB invites applications for post of MD

The Banks Board Bureau has also sought applications for the position of managing director of the government-owned development finance institute

The Centre has infused Rs 20,000 crore in National Bank for Financing Infrastructure and Development (NaBFID) that will help the development finance institution start its operations to catalyse investment in the infrastructure sector.

In a notification, the Department of Financial Services (DFS) notified February 7 as the date on which Rs 20,000 crore of share capital of the NaBFID has been allotted to the Centre. The DFI had to be set up with an initial paid-up capital of Rs 20,000 crore.

Separately, the Banks Board Bureau (BBB) has also sought applications for the position of managing director of the government-owned development finance institute. The DFI is preparing to commence its operations in the April-June quarter.

The DFI will be able to lend to or invest in infrastructure projects located in India and outside the country prioritising systemic risk mitigation, credit enhancement, subordinate debt, debt maturities suited to project life spans, and raise long-term finance for the same. The DFI will get government guarantees at a concessional rate of up to 0.1 per cent for borrowing from multilateral institutions, sovereign wealth funds, and other such foreign institutions. 

In October last year, the government had appointed veteran banker KV Kamath as chairperson of the DFI. Government nominees Pankaj Jain and Sumita Dawra were also nominated as directors on the board of NabFID