BackNIIF-linked NBFC loans up sixfold
The two NBFCs are NIIF Infrastructure Finance and Aseem Infrastructure Finance
PremiumNEW DELHI : Loans by non-banking financial corporations where National Investment and Infrastructure Fund’s (NIIF) has majority stakes increased by more than sixfold in three years, according to a finance ministry statement.
The statement came after finance minister Nirmala Sitharaman on Wednesday chaired a meeting of the Governing Council of the NIIF.
The NIIF, which was set up by the government in 2015, invests in infrastructure and related sectors in the country.
The Governing Council noted that NIIF has developed into an “internationally credible and commercially viable" investment platform, backed by several global and domestic investors who have invested alongside the Central government in NIIF funds.
“The GC appreciated that the two infrastructure Non-Banking Financial Companies (NBFCs) where NIIF has majority stakes, have increased their combined loan book from ₹4,200 crore to ₹26,000 crore in 3 years without experiencing any non-performing loans (NPLs) till date," the ministry said.
The two NBFCs are NIIF Infrastructure Finance and Aseem Infrastructure Finance.
NIIF’s first bilateral fund—an “India Japan Fund" with contributions from the government— has been proposed through a memorandum of understanding between National Investment and Infrastructure Fund Limited (NIIFL) and Japan Bank for International Development (JBIC). The MoU was signed on 9 November.
“The GC also guided NIIF to undertake advisory activities pro-actively to support central and state governments to create a pipeline of investible PPP projects," it added.
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