MC EXCLUSIVE NaBFID is a success story by combining the right timing, institutional maturity, and strategic clarity, says MD Rajkiran Rai

What projections you would like to give on growth in assets?

As of now the total assets in the book is around Rs 80,000 crore, with the book around Rs 65,000 crore and the rest being NCDs. Our sanctions have crossed Rs 2.5 lakh crore. We are among the top two syndicators today, along with the SBI. We crossed Rs 2 lakh crore in March FY25 and expect to cross Rs 3.2 lakh crore in sanction by end of this year.

We should be disbursing Rs 50,000 to 60,000 crore in the next six to seven months. As the pipelines are strong,  we are expecting the disbursement to pick up, because sanction to disbursement takes time in infra projects.

Half of our book is greenfield projects and is spread over one to three years. Ithe initial years, our balance sheet will not grow very fast, but after March 2026, as the pipeline is robust outr balance sheet will double every year.

How has your sanction pipeline evolved? What’s the target going forward?

Our cumulative sanctions to date have crossed Rs 2.5 lakh crore. We’re projecting this to increase to around Rs 3.2 lakh crore by March 2026. These are projects that we have already appraised and committed to, but disbursement happens progressively.

What makes NaBFID a standout story in India's infrastructure financing landscape, given that there were lot of questions raised when the idea was seeded about five years ago?

NaBFID has emerged as a success story by combining the right timing, institutional maturity, and strategic clarity. Launched into a more developed economic ecosystem, it leveraged its unique structure and professional talent to quickly and has built credibility and scale. In just a short span, NaBFID has become the first-choice lender for major infrastructure projects underwriting large toll roads, leading the data center and renewable energy financing space, and reviving dormant products like PCE (Partial Credit Enhancement) with regulatory collaboration. With strong profitability (Rs 2,100 crore last year, Rs 2,500-3,000 crore expected this year) and rapid balance sheet growth (adding Rs 1 lakh crore annually), NaBFID has not only proven its operational strength but also its capacity to absorb risk and drive long-term developmental impact. Its ability to balance speed with rigorous project appraisal has positioned it as a modern, high-impact development finance institution for New India.

How is NaBFID’s balance sheet likely to grow in the coming years?

While the initial phase was slower due to greenfield exposure, we expect a significant acceleration. The current Rs 80,000 crore should go up to around Rs 1.15 lakh crore by March 2026. By March 2027, we expect to hit Rs 2 lakh crore in total assets. After that, we anticipate adding at least Rs 1 lakh crore annually, assuming stable macroeconomic conditions.

What sectors dominate your portfolio currently? Are there plans to diversify?

Roads are the largest sector in our book, which is roughly 35 percent. Energy, both thermal and renewable, is another large component, along with transmission. We’re also increasing exposure to sectors like healthcare (especially hospitals), data centers, and urban infrastructure. Urban infra, like waste-to-energy, sewage treatment, and mobility is expected to see more lending over the next 18 months.

Are you seeing any challenges in underwriting, overly aggressive bidding in some sectors?

Yes, that’s a real issue, especially in sectors like renewable energy. In certain bidding rounds, tariffs quoted are very aggressive, and it raises questions about project viability. We’re cautious if the financials don’t hold up under stress tests, we don’t fund, even if the project has won a bid. We’ve walked away from several such cases.

Will NaBFID look at going public in the near future?

There are no plans to list. Our focus is on being a developmental institution. A public listing brings pressure to prioritize returns over long-term impact. Instead, we may spin off specific arms like advisory services or tech into separate entities if needed.

How does NaBFID manage its pricing competitiveness?

NaBFID actively manages a diversified funding strategy via domestic bank credit, bond issuances, the ECB (External Commercial Borrowing) route, and dollar bond issuances. The institution prioritizes the most cost-effective sources, as it operates in a tight-margin lending environment without access to low-cost funds like savings or current accounts. Currently, the landed cost of dollar borrowings (including all hedging and charges) is around 7.3% to 7.5%, while domestic bank credit is available at sub-7%. Domestic bonds are priced around 7.1% to 7.2% for 10-year tenors. Given these dynamics, NaBFID selects funding based on real-time cost efficiency.

To further reduce borrowing costs, NaBFID is also exploring partnerships with international guarantee providers like MIGA, though discussions are still at an early stage. The institution's cost of funds typically hovers around G-sec + 25–30 bps, and since it competes directly with large players like SBI, it must match their lending rates to stay competitive.