NaBFID to commence operations from first quarter of FY'23: K V Kamath

The National Bank for Financing Infrastructure and Development (NaBFID) will begin its operations from the first quarter of the next financial year, its chairman K V Kamath said on Tuesday.

NaBFID was set up by the government last year as a development financial institution (DFI) to support the development of long-term infrastructure financing in the country.

''The board structure (for NaBFID) is in place. The basic foundation and policy framework have been built. From the next quarter, which is the quarter starting April, we should be operationalised,'' Kamath said at an event organised by the Indian Construction Equipment Manufacturers' Association (ICEMA).

He said a core team of 25 people is already in place and the process of selection of the CEO and other leaders to run the bank is underway.

The DFI will fund projects from both private and public sectors, wherever there is a need, he said.

Kamath has been appointed as the chairman of the DFI for a period of three years by the government in October last year.

The DFI has been set up with a view to supporting the development of long-term non-recourse infrastructure financing in India, including development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure.

It will help fund about 7,000 infra projects under the National Infrastructure Pipeline (NIP), which envisages an investment of Rs 111 lakh crore by 2024-25.

The government has committed a Rs 5,000-crore grant over and above Rs 20,000-crore equity capital for NaBFID.

Kamath said the bank will raise funds from pension and insurance companies, which have long-term funds. It will also look at other debt instruments, including bonds and guarantees for capital raising.

Last week, the Reserve Bank of India (RBI) said that NaBFID will be regulated and supervised as an All India Financial Institution (AIFI) by it under the RBI Act, 1934.

It shall be the fifth AIFI after EXIM Bank, NABARD, NHB and SIDBI, the central bank said.

(With PTI inputs)

Published on: Tuesday, March 15, 2022, 04:29 PM IST