Nabfid plans to raise up to ₹70,000 crore in FY26 for development push

Eyes ECBs and international bond markets

National Bank for Financing Infrastructure and Development (Nabfid) is looking to borrow — including through market debt and credit lines — up to ₹70,000 crore in the current financial year (FY26), as against just over ₹23,000 crore raised in FY25, both from international and domestic markets.

 

The current financial year may also see the development finance institution tapping the overseas market for its maiden fundraise through external commercial borrowings (ECBs).

 

Rajkiran Rai G, its managing director, told Business Standard the government-owned financial institution has so far been using domestic sources. “Now we plan to visit the international market through external commercial borrowings and overseas bond offering, depending on market conditions,” he said.

 

On the financial liabilities side, its outstanding debt securities grew to ₹37,190 crore in March 2025, up from ₹19,668 crore in March 2024. Borrowings from lenders more than doubled to ₹11,934 crore in FY25 from ₹5,550 crore a year ago.

 

Referring to asset growth, Rai said outstanding assets — loans plus investments in instruments like debentures — are expected to double from ₹59,000 crore in March 2025 to around ₹1.15 trillion by March 2026.

 

Its loan portfolio rose to ₹56,620 crore as of March 31, 2025 (FY25), its second full year of operations, from ₹35,342 crore a year ago. Investments grew to ₹4,319 crore at the end of FY25 from ₹100 crore a year ago.

 

“Initially it is challenging to grow at a fast clip. But as the pipeline builds, the balance sheet will grow much faster. So, the institution is expecting to double assets in FY26,” he added.

 

The cumulative sanctions grew to ₹2.03 trillion at the end of FY25 from ₹1.01 trillion in March 2024 and ₹18,560 crore in March 2023. Cumulative disbursals rose to ₹74,748 crore at the end of March 2025 from ₹36,228 crore in March 2024 and ₹10,045 crore in March 2023, according to the analysts' presentation.

 

Nabfid’s net profit rose to ₹2,191 crore in the financial year ended March 2025, up from ₹1,601 crore in the financial year ended March 2024.