NaBFID's loan sanctions to rise to Rs 3.2 lakh crore by end of FY25, says MD Rajkiran Rai

"We aim to touch Rs 3.2 lakh crore sanctions by March-end because in the second half we are expecting a lot of flows of projects," Rajkiran Rai during an interview. (Representative Image)

National Bank for Financing Infrastructure and Development (NaBFID) loan sanctions is expected to increase to Rs 3.2 lakh crore by the end of the current financial year, managing director, Rajkiran Rai told Moneycontrol in an exclusive interview on September 12.

This is because, Rai expects a lot of flow of projects in the second half of the current financial year.

"We aim to touch Rs 3.2 lakh crore sanctions by March-end because in the second half we are expecting a lot of flows of projects," Rai during an interview.

Currently, the company has Rs 1.2 lakh crore sanctions book, and disbursements have crossed over Rs 50,000 crore. Rai expects that the disbursements will touch to Rs 93,000 crore, as compared to Rs 50,000 crore as of now, and Rs 30,000 crore at the end of FY24.

"If the project flow increase, we may increase our targets also," Rai said.

The top official of NaBFID also said that the company is currently funding to more than 12 sectors, which includes infrastructure, energy, roads, and railways. "We do all, but they are small. Major chunk of our advance, as of now, is in road sector and energy sector," Rai said.

On the equity investment front, Rai said that the company is not looking for it, but did not ruled out the possibility going ahead.

"As of now, NaBFID is not looking for equity investment. As of now, we have sufficient equity. We will not rule out the possibilities going ahead. But at this point of time, yes, we are adequately capitalized," Rai added.

Further, the company is planning to raise Rs 53,000 crore through bonds from the domestic market. Of the total amount, Rs 9,000 crore has been already raised by the company and remaining will be raised depending on the needs of the company.

Rai ruled out the plan to raise funds from the overseas market citing that the domestic market is much cheaper and currency risk is too early to take.

During an interview, Rai also said that the company will see impact of 0.5-0.7 percent on the lending rates of the new project finance norms gets implemented.

"If the same rules come in, the cost for lending may go up by 0.5 to 0.7 percent is a rough estimate," he added.