The government promoted the National Bank for Financial Infrastructure and Development (NaBFID), which doubled its earnings in the quarter ending December 2023 on the back of higher interest income and lower operating profits.
The youngest infrastructure finance company reported a Rs 632 crore net profit for the quarter ending December 2023 as against Rs 311 crore reported in the corresponding quarter, according to the disclosures made by NaBFID to the stock exchange.
During the first nine months of this fiscal year, it reported a net profit of Rs 1414 crore, nearly double the net profit reported in the corresponding period last year.
It does not have any bad loans and its capital adequacy ratio stood at 191%. The company has not disclosed the size of its loan but stated that it has issued non-convertible debentures of Rs 19516 crore, of which Rs 10000 crore is for 10 years and the remaining is for 15 years.
The NaBFID Act came into effect on April 19, 2021, and the institution initiated lending operations in the last quarter of fiscal 2023.
A report by Crisil on NaBFID dated November 28, 2023, said, “As of September 30, 2023, sanctions amounted to Rs 45,900 crore across roads (33%), thermal power (35%), renewable (14%), railways (11%). Around 23% of sanctions are towards greenfield projects. Against these sanctions, the institution has disbursed Rs 15,335 crore till September 30, 2023.”
It further added, NaBFID began by financing brownfield and operational projects and is now gradually building its presence across the entire project life cycle, with a mix of greenfield and brownfield projects.
