The National Bank for Financing Infrastructure and Development (NaBFID) is a specialized Development Finance Institution in India aimed at supporting the country's infrastructure sector.
Established in 2021 by an Act of Parliament, it has the essential objective of addressing the gaps in long-term non-recourse finance for infrastructure development, strengthening the development of bonds and derivatives markets in India, and sustainably boosting the country’s economy.
The bank is well-capitalized with an initial capital of 200 billion rupees and grants of 50 billion rupees.
The National Bank for Financing Infrastructure and Development is a significant initiative to develop world-class infrastructure in India and foster investment opportunities across the sector.
The bank is expected to directly or indirectly lend, invest, or attract investments for infrastructure projects located entirely or partly in India.
It may raise money in the form of loans or otherwise both in Indian rupees and foreign currencies, or secure money by the issue and sale of various financial instruments including bonds and debentures.
This government-owned funding agency will ensure the risk-pricing is correctly done on its bonds because investors will have to be rewarded for taking longer-tenure risks.
The establishment of NaBFID reflects the Indian government's commitment to financing nationally important infrastructure projects and fostering investment opportunities in the infrastructure sector.
The National Bank of Financing Infrastructure and Development (NaBFID), along with Public Sector Banks (PSUs) and Indian Infrastructure Financiers, is aiming to generate funds worth ₹30,000 crore ahead of elections, according to a report by Economic Times. Out of this lump sum, the NaBFID is anticipating a pull-off of Rs 10,000 crore.
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