After constraints get addressed, IIFCL book can grow to ₹4 trn by FY28: MD

P R Jaishankar talks about the road ahead for India Infrastructure Finance Company

India Infrastructure Finance Company (IIFCL), the wholly owned government enterprise that provides long-term finance to viable infrastructure projects, is aiming to grow the size of its books to ₹4 trillion by 2028. In a face-to-face interview with Harsh Kumar, Managing Director P R Jaishankar talks about the road ahead for the financier. Edited excerpts:

 

The Department of Financial Services secretary has talked of setting a target of ₹1 trillion (size of books) and aiming to double that in three years. How has been the progress on that front?

 

We are confident about that target. On a consolidated basis, we’re close to achieving it. We aim to maintain that level in the coming year as well. Our projections indicate by the end of FY26, we should reach around ₹1.7 trillion (consolidated) and we plan to scale this up even further. Although we are facing constraints related to lending and resource mobilisation, the government is aware of these, and we expect them to be resolved soon. With those constraints addressed, we are targeting a significant increase to ₹4 trillion by 2028.

 

You’re planning to raise around ₹30,000 crore this quarter. Which sectors will that fund?

 

They include emerging sectors such as renewable energy and mass rapid transit systems. Additionally, we will invest in power transmission as well as conventional sectors like roads, power, airports, and ports. We are also emphasising data centres and digital infrastructure. Allocation will be across these priority sectors.

 

How much has been allocated for data centres so far?

 

We have sanctioned three data-centre projects. Allocation is ₹2,000 crore-3,000 crore. 

How IIFCL is looking at financing in the railways and airports?

 

We’ve financed almost all private airports and are increasingly supporting metro-rail projects. Both railways and airports are high-priority sectors for us, alongside traditional sectors like roads and power.

 

You have highlighted the importance of sectoral diversification. Will sector-wise allocation change?

 

Sector-wise distribution will largely remain proportionate, but with increased emphasis on emerging areas. We’re looking to double our renewable-energy portfolio in the near term. 

You’ve spoken before about listing IIFCL. What are the status and expected timeline?

 

Our business projections are clear. We aim to scale up significantly and sustain our growth momentum. To maintain a 20-30 per cent compound annual growth rate, we require a robust resource base, both in terms of debt and equity. We’re working on both. Maintaining a strong capital adequacy ratio is a priority, and once everything is in place, we will move forward on listing.

 

You’ve consistently aimed at zero non-performing asset (NPA) status. What’s the position now?

 

We’re at 0.35 per cent (net NPA ratio, by the end of March), an all-time low, and the gross NPA ratio reduced to 0.46 per cent. Technically we could have achieved zero NPA, but we’ve on purpose retained a small portion due to strategic reasons. Most of these are legacy accounts, primarily in roads and coal.

 

The Reserve Bank of India (RBI’s) has reduced the repo rate in the last two credit policies. How is that affecting infrastructure financing?

 

Infrastructure financing is sensitive to interest rates and loan tenures. Longer-tenure projects are generally more viable. We’ve been advocating extended tenures to align with project life cycles. With the RBI’s current stance being “accommodative”, it’s a positive environment for infrastructure.

 

What is IIFCL doing in border areas?

 

We have financed over 50 border and strategic infrastructure projects. These include roads, transmission lines, pipelines, and power installations. We want to increase our involvement in such projects, which are vital to national security and socioeconomic development in border and rural areas. Our vision is to bring world-class infrastructure to these areas and foster livelihood and regional growth. India’s financial sector is resilient, and it’s strong enough to withstand such developments. The government is taking prudent, strategic steps, and IIFCL stands firmly behind these efforts with financial support.

 

What’s your outlook for FY26 in terms of targets and growth?

 

(As stated earlier) our target for FY26 is to achieve consolidated loan books of ₹1.7 trillion. We plan to double our financing levels by 2027 and continue scaling up to even higher levels by 2028. We reported a 39 per cent year-on-year surge in net profit (PAT) to ₹2,165 crore for FY25 as against ₹1,552 crore in FY24. The record-high figure was achieved despite headwinds and volatility in infrastructure. In FY25, the company’s net worth rose 15 per cent year-on-year to ₹16,395 crore as against ₹14,266 crore in FY24 and 59 per cent higher than the ₹10,306 crore in FY20, signalling increasing capacity for IIFCL to lend more to infrastructure projects with higher exposure limits.