NaBFID to submit infrastructure financing report to DFS within 15 days

NaBFID will consult stakeholders and submit a report to the Department of Financial Services in 15 days after a meeting chaired by DFS Secretary M Nagaraju with top banks and DFIs

The National Bank for Financing Infrastructure and Development (NaBFID) will consult all concerned stakeholders and submit a report to the Department of Financial Services (DFS) within 15 days, according to an official press statement.

 

The decision was taken at a meeting chaired by M. Nagaraju, secretary, DFS, to deliberate on issues related to financing in the infrastructure sector. The meeting was attended by senior management from major public sector banks, private sector banks, development financial institutions and non-banking finance companies (NBFCs) registered as infrastructure finance companies (IFCs).

 

“Some of the key issues discussed were gaps in the availability of financing, barriers to the issue of municipal bonds, enhancing capacity building and training, and better availability of data on defaults and recoveries. Various measures and recommendations were put forward on issues related to financing in the infrastructure sector,” said the finance ministry press statement. 

The meeting was attended by the chairman of the State Bank of India (SBI); managing directors and chief executive officers of Punjab National Bank (PNB), Bank of Baroda (BoB), Canara Bank, Union Bank of India (UBI), HDFC Bank and ICICI Bank; chairman of the National Bank for Agriculture and Rural Development (NABARD); managing director of NaBFID; chairmen and managing directors of Power Finance Corporation (PFC), Rural Electrification Corporation Limited (RECL) and Indian Renewable Energy Development Agency (IREDA); deputy managing director of India Infrastructure Finance Company Limited (IIFCL); and the chief executive officer of the National Credit Guarantee Trustee Company Limited (NCGTC).

 

In January 2025, speaking at an event organised by IIFCL, Nagaraju suggested that banks and NBFCs increase their participation in financing large-scale infrastructure initiatives, which are crucial for India’s ambition to achieve developed nation (Viksit Bharat) status by 2047.

 

“There is also a need for pooling resources by NBFCs and banks so they can finance large projects,” Nagaraju said at the National Summit on Indian Infrastructure for Viksit Bharat 2047.

 

He further said that lenders should focus on creating world-class infrastructure projects and explore innovative financing products. He underlined the need to focus on risk management and guard against fraud.

 

“Infrastructure projects are typically viable if there is no fraud, funds are not diverted and timelines are adhered to. When we finance infrastructure, most projects are revenue-generating and viable if these conditions are met,” Nagaraju added.