NaBFID to start lending operation in first quarter of next financial year: Kamath

National Bank for Financing Infrastructure and Development (NaBFID) Chairman KV Kamath on Friday said the newly created Rs 20,000-crore DFI would commence its lending operation in the first quarter of the next financial year.

In October, the government had appointed Kamath as the chairperson of the development finance institution (DFI) for three years.

”Realistically, we are a bank, and we need to get the nuts and bolts of a bank right…we are well into that,” Kamath said at the 94th annual convention of Ficci.

He said that the technology platform is being given shape, and officials are being appointed.

”I would think the first approval probably will be in the first quarter of the next accounting year that is during the April period we should do it,” he said. By that time, he said, the managing director and CEO and other key staff would be in place.

Kamath said NaBFID would be open to financing projects other than National Infrastructure Pipeline (NIP) based on the need.

The DFI has been established as a statutory body to address market failures that stem from the long-term, low margin and risky nature of infrastructure financing. Wholly-owned DFI, therefore, has both developmental and financial objectives. It will help fund about 7,000 infra projects under the National Infrastructure Pipeline (NIP), which envisages an investment of Rs 111 lakh crore by 2024-25.

On growth, Kamath said, it would be driven by various axis, including infrastructure, digital economy, manufacturing and agriculture.

Driven by all these factors, he said, India could aspire for a growth rate of 12-13 per cent in the future.