NaBFID to complete Rs 60,000 crore disbursements in FY24: MD Rajkiran Rai G

Rajkiran Rai G., Managing Director, NaBFID

National Bank for Financing Infrastructure and Development (NaBFID) is likely to complete disbursements of around Rs 60,000 crore by the end of the current financial year, Rajkiran Rai G, Managing Director told Moneycontrol on June 20.

“By FY24 we will complete disbursements of around Rs 60,000 crore,” Rai told Moneycontrol on the sidelines of the bond listing event of NaBFID. Currently, the disbursement of the bank is close to Rs 15,000 crore, he added.

In the current financial year, the bank has touched a sanction of Rs 55,000 crore so far of which final sanctions are Rs 25,000 crore. Going ahead, Rai expect Rs 75,000 crore sanctions in the rest of the year. While the in-principal approval of sanctions can be much higher than Rs 1 lakh crore in the current financial year.

NaBFID is a specialised Development Finance Institution in India aimed at supporting the country's infrastructure sector, which can significantly gain from an enabling credit flow by means of attractive instruments and channelised investment.

Rai told Moneycontrol that the bank in the coming years will focus more on greenfield assets financing, but initially, they are looking at a mix of greenfield assets and operational assets.

“In the first year of operation, we are looking for a mix of greenfield and operational assets because we have to quickly ramp up our operations. So this year, one-third of our book will be greenfield. Going ahead we will start our focus on greenfield,” he said in an interview.

Greenfield investment means a company will build its own, brand-new facilities from the ground up.

Fundraising plans

The bank is likely to tap the bond market in the third quarter of the current financial year, said Rai. This is because by September they will be able to use recently raised money through bonds and also they have some credit lines with different banks, he added.

The bank has received approval to raise Rs 30,000 crore.

“If the disbursement plans stick, then we have to achieve Rs 30,000 crore fundraising, but not in the second quarter, it may come in the third quarter. The second issuance may come in the third quarter of this financial year,” he said.

Last week, the bank raised Rs 10,000 crore through the issuance of listed bonds maturing in 10 years at a 7.43 percent coupon.

The issue received bids worth Rs 23,629.50 crore from the investors, which is approximately 4.7 times of oversubscription against the base issue of Rs 5,000 crore.

SBI Capital Markets was the lead advisor and Cyril Amarchand Mangaldas was the legal advisor for the issuance, a release said.

On June 20, the listing of these bonds took place on the BSE.