National Bank for Financing Infrastructure and Development

What National Bank for Financing Infrastructure and Development does

National Bank for Financing Infrastructure and Development (NaBFID) is India's statutory Development Finance Institution, established by the National Bank for Financing Infrastructure and Development Act, 2021 and wholly owned by the Government of India. Headquartered in Mumbai and regulated by the Reserve Bank of India as an All India Financial Institution under sections 45L and 45N of the RBI Act, 1934, NaBFID was seeded with ₹20,000 crore of GoI capital to address gaps in long-term, non-recourse financing for infrastructure. The institution has rapidly scaled its loan book from zero to approximately ₹2 trillion within three to four years, with total assets of ₹1.04 trillion as of December 31, 2025 and NPAs contained at 0.5%.

NaBFID's product platform spans the full infrastructure financing stack: term loans for greenfield and brownfield projects, bonds and debentures (including zero-coupon and green variants), guarantees (bid, mobilization, performance), letters of comfort for capex, partial credit enhancement of up to 20% first-loss, investment trusts, and ESG-focused lending. In 2026 it launched a $500 million equity fund and a $500 million blended finance fund, both to be housed in a new subsidiary holding company, marking a deliberate expansion beyond pure debt into underserved sectors such as urban infrastructure and waste management. Liability-side, the institution accesses domestic bond markets (with multiple oversubscribed issuances), ECB channels (HSBC-arranged $125 million maiden foreign currency loan), and government capital.

The go-to-market is direct, relationship-led, and counterparty-focused: large infrastructure developers and project companies, state governments and urban local bodies, and renewable energy sponsors. Notable borrowers include Greenko, ACME Solar, Juniper Green Energy, Inox Clean Energy, TVS Infrastructure Trust, Welspun One, and the Mumbai Ring Road project. Co-financing partnerships with SBI, PFC, and REC under the CHAKRA initiative, plus advisory MoUs such as the one with PDCOR, extend reach without diluting the direct-origination model. FY2025-26 revenue of ₹7,257.30 crore (45.93% YoY growth) and net profit of ₹3,036.67 crore (38.60% YoY growth) underscore the operating leverage of the platform, and the planned merger with IIFCL and proposed rebrand to Infrastructure Development Bank (IDB) signal the next phase of institutional scaling.

Name

National Bank for Financing Infrastructure and Development

Legal name

National Bank for Financing Infrastructure and Development

Website

https://nabfid.org

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

51–100 employees

Short description

NaBFID is India's sovereign-backed Development Finance Institution, wholly owned by the Government of India and regulated by the RBI, providing long-term infrastructure financing to project developers, state governments, and renewable energy sponsors across India via term loans, bonds, guarantees, and partial credit enhancement.

Ownership category

akta.pro rank

Product category

Development Finance & Infrastructure Lending

NAICS

Credit Intermediation and Related Activities (522), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Federal & Federally-Sponsored Credit Agencies (6111), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Infrastructure & Project Finance Facilities (BPADACAG)

akta.pro secondary industries

National Development Banks & State Development Finance Institutions (DFIs) (BPADACAC), Development Finance & Blended Finance Facilities (BPADAOAD), Infrastructure & Project Finance Private Debt (FSANADAH)

Keywords

• Infrastructure financing
• Development finance institution
• Project lending
• Infrastructure bonds
• Long-term credit

Headquarters

HQ city

Mumbai

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Interest Income from Lending: NaBFID earns interest income by providing term loans (greenfield, brownfield), bonds, debentures, and other credit facilities to infrastructure projects. Interest rates are based on the NaBFID Lending Rate (NLR) which varies by tenure.
2. Bond Issuance Services: NaBFID raises funds through domestic bond issuances and external commercial borrowings to fund its lending operations.
3. Equity and Blended Finance: NaBFID announced plans to diversify into equity investments and blended finance through a subsidiary holding company, launching equity and blended finance funds targeting underserved sectors like urban infrastructure and waste management.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

NaBFID is India's dedicated Development Finance Institution providing long-term non-recourse financing for infrastructure projects across transport, logistics, energy, water, sanitation, communication, and social infrastructure sectors. Core offerings include term loans (greenfield and brownfield), bonds and debentures, guarantees, letters of comfort, investment trusts, partial credit enhancement, and ESG-focused lending, with the institution also diversifying into equity and blended finance funds.

Product overview

NaBFID operates as a unified development finance institution providing a comprehensive suite of infrastructure financing products. The core offerings include Term Loans (for greenfield and brownfield projects), Bonds or Debentures (including domestic, foreign currency, and green bonds), Guarantees (bid bonds, mobilization guarantees, performance guarantees), Letters of Comfort, Investment Trusts for equity opportunities, and Partial Credit Enhancement products offering up to 20% first-loss guarantees. The institution has recently expanded into equity and blended finance with $500 million funds each, and offers ESG-focused lending. The product architecture functions as an integrated platform where debt products serve as the primary offering while the newer equity and blended finance funds complement the traditional lending portfolio.

Differentiator

Problem solved

Functional benefit

Products and services

• Term Loans Long-term financing for infrastructure projects including greenfield and brownfield developments, offered to private and public infrastructure developers.
• Bonds and Debentures Bond issuance and subscription services for infrastructure financing, including domestic capital bonds, foreign currency bonds, and green bonds, offered to infrastructure developers.
• Guarantees Bid bonds, mobilization/advance payment guarantees, and performance guarantees for infrastructure projects, provided to project developers and contractors.
• Letter of Comfort (Capex LC) Letters of comfort for capital expenditure requirements in infrastructure development, supporting project developers in securing additional financing.
• Partial Credit Enhancement Credit enhancement products for infrastructure bonds, offering first-loss guarantees of up to 20% to improve project ratings, offered to bond issuers in infrastructure sectors.
• ESG-focused Lending
• Zero-Coupon Bonds 10-year maturity zero-coupon bonds issued at discount, generating annualized returns of approximately 7.49%, with income treated as capital gains, offered to bond market investors.
• Equity Fund $500 million equity fund launched to diversify beyond traditional debt financing, targeting underserved sectors like urban infrastructure and waste management.
• Blended Finance Fund $500 million blended finance fund to mobilize institutional capital for sustainable infrastructure projects, offered to investors and infrastructure developers.
• Investment Trusts Equity investment opportunities through investment trust structures, offered to infrastructure developers and investors seeking project exposure.

Quantifiable outcome

• Loan book of ₹1.2 trillion with NPA levels at 0.5%, lower than home loan sector
• +1 more outcomes

Named customers7 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Six partnerships are on record, tiered core.

• Projects Development Company of Rajasthan Limited (PDCOR)coreStrategic or Co-development Partner · 20 April 2026MoA signed to strengthen advisory services for state and city-level infrastructure projects. Enables joint exploration of financing and transaction advisory opportunities including transaction structuring, due diligence, and facilitating financial closure for infrastructure projects undertaken by State Governments and Urban Local Bodies. Aims to enhance project preparation quality and mobilize institutional capital more effectively.
• TVS Infrastructure TrustcoreStrategic or Co-development PartnerActed as anchor investor for ₹1,100 crore NCD programme, raising ₹830 crore through 20-year AAA-rated bond issuance. One of the longest-tenor and lowest-cost debt issuances in India's industrial and warehousing InvIT segment.
• State Bank of India (SBI)coreStrategic or Co-development PartnerMoU signed for co-financing and capacity building under SBI's CHAKRA initiative for sunrise sectors including renewable energy, electric mobility, green hydrogen, semiconductors, and smart infrastructure.
• Power Finance Corporation (PFC)coreStrategic or Co-development PartnerMoU signed for co-financing and capacity building under SBI's CHAKRA initiative.
• Rural Electrification Corporation (REC)coreStrategic or Co-development PartnerMoU signed for co-financing and capacity building under SBI's CHAKRA initiative.
• India Infrastructure Finance Company Limited (IIFCL)coreStrategic or Co-development PartnerGovernment is planning merger of NaBFID with IIFCL to create India's largest government-owned infrastructure financing institution.

Scale indicators18 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• India Infrastructure Finance Company Limited (IIFCL): Government-owned infrastructure financing institution and announced merger partner with NaBFID. Operates in the same infrastructure debt space with similar mandate, products, and target borrowers.
• Power Finance Corporation (PFC): Government-owned non-banking financial company providing infrastructure financing, primarily to the power sector. Co-financing partner under SBI's CHAKRA initiative with overlapping project finance mandate.
• Rural Electrification Corporation (REC): Government-owned NBFC financing power and infrastructure projects across India. Co-financing partner under SBI's CHAKRA initiative with comparable project finance offerings.
• Small Industries Development Bank of India (SIDBI): All India Financial Institution under RBI regulation providing developmental finance. Comparable institutional structure and regulatory positioning to NaBFID as a sector-focused DFI.
• National Housing Bank (NHB): RBI-supervised AIFI providing housing finance. Comparable institutional structure, regulatory status, and government-owned DFI mandate, though focused on housing rather than infrastructure.
• Industrial Finance Corporation of India (IFCI): Historic Indian DFI providing long-term finance to industry and infrastructure. Comparable developmental finance mandate, though now restructured under government ownership.
• National Bank for Agriculture and Rural Development (NABARD): India's apex agricultural DFI regulated by RBI as an AIFI. Comparable institutional structure and government-backed developmental financing model.
• Export-Import Bank of India (Exim Bank): Government-owned DFI providing trade and project finance. Comparable institutional structure and developmental mandate; key personnel cross-overs (e.g., Samuel Joseph's 21 years at Exim Bank).

Broad incumbents

• State Bank of India (SBI): India's largest public sector commercial bank, a co-financing partner through CHAKRA initiative. Overlaps in infrastructure lending but operates as a universal bank with significantly broader mandate.
• Asian Development Bank (ADB): Multilateral development bank financing Asian infrastructure including in India. Comparable DFI model and reference institution cited for NaBFID's IDB rebranding vision.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/NaBFID_official

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds6 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments16 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about National Bank for Financing Infrastructure and Development