 "NaBFID Managing Director Rajkiran Rai G said besides the domestic market, the firm would look at tapping into multilateral funding bodies")
The bank has already raised Rs 9,000 cr and the rest will be raised depending on the infrastructure lender’s disbursement pattern: NaBFID Managing Director Rajkiran Rai G |
Indian government-backed National Bank for Financing Infrastructure and Development (NaBFID) plans to raise Rs 53,000 cr ($6.31 billion) from the debt market this fiscal year, its top executive told Reuters on Thursday.
The bank has already raised Rs 9,000 cr and the rest will be raised depending on the infrastructure lender’s disbursement pattern, said Rajkiran Rai, NaBFID’s managing director.
NaBFID has already sanctioned Rs 20,000 cr of its target of Rs1 trillion for the 12 months through March 2025, Rai said.
And while it also issued loans worth more than Rs 1 trillion as of March 2024, that was over a 15-month period, he noted.
Rai is confident of meeting this year’s target despite the potential hiccup of the Reserve Bank of India enforcing its proposed norm of requiring lenders to set aside higher provisions for under-construction infrastructure projects.
Rai expects the new norm to impact pricing and said NaBFID has told the RBI of its concerns that a near-completion project’s cash flow would be hit by these proposed norms.
He expects the central bank to consider the industry’s concerns and as such, foresees a staggered implementation.
If that happens, Rai said, credit growth will not suffer but a temporary disruption to pricing was likely.
“If the existing guidelines are implemented as is, it (lending rates) can go up anywhere between 0.5 per cent-0.6 per cent,” Rai said.
“Any projects, as of now, which are viable, backed by good promoters with proper conditions and agreements, are not delayed for want of credit. There are enough lenders in the system. So I don’t foresee a problem of credit.”
First Published: Sep 12 2024 | 4:58 PM IST
