NaBFID: National Bank for Financing Infrastructure and Development

Parliament passed this bank’s founding law in under a week, in March 2021. The bank did not disburse its first loan until December 2022.

What Is NaBFID?

India’s infrastructure projects need loans that run for decades, not years. NaBFID exists to write those loans.

The National Bank for Financing Infrastructure and Development (NaBFID) was set up under the NaBFID Act, 2021. It received Presidential assent on 28 March 2021, after Lok Sabha passed it on 23 March 2021.

• NaBFID is India’s fifth All India Financial Institution. It joins NABARD, SIDBI, EXIM Bank, and NHB.
• It is regulated by the Reserve Bank of India.
• NaBFID is headquartered in Mumbai, Maharashtra.

Why Was NaBFID Created?

India once had dedicated development banks. Then it didn’t. NaBFID brings that model back.

• NaBFID is a Development Finance Institution (DFI), a model India had largely abandoned.
• Older DFIs like IDBI and ICICI moved away from pure development banking, over time.
• NaBFID’s core role is long-tenor financing for infrastructure. Its loans typically run longer than what commercial banks offer.

Who Runs NaBFID?

Two names matter here, and they hold different jobs. Don’t confuse the Chairperson with the MD and CEO.

• The Government of India initially infused ₹20,000 crore as NaBFID’s share capital.
• K V Kamath, previously the first head of the BRICS-backed New Development Bank, is NaBFID’s Chairperson.
• Rajkiran Rai G, former MD and CEO of Union Bank of India, took charge as NaBFID’s first MD and CEO on 8 August 2022.

Does NaBFID Lend Money, or Invest In Equity?

This is the trap most likely to trip you up. NaBFID lends. It does not buy equity stakes.

• NaBFID is a debt lender. It offers direct loans, blended finance, partial credit enhancement, and takeout financing.
• NIIF (National Investment and Infrastructure Fund) is a separate, quasi-sovereign fund. It takes equity stakes in infrastructure assets instead.
• A question describing NaBFID as an equity investor, or NIIF as a lender, is testing this exact debt-versus-equity mix-up.

Did NaBFID Start Lending as Soon as Its Act Took Effect?

Here’s the second common trap. Passing a law and opening for business are not the same moment.

• The NaBFID Act came into force in April 2021, soon after its March 2021 assent.
• But NaBFID did not disburse its first loan until December 2022. That’s a gap of about 20 months.
• Those months went toward setting up leadership, capital, and operational systems.
• A question implying NaBFID began lending immediately upon its Act’s passage is testing this exact implementation lag.

How Fast Is NaBFID Growing?

NaBFID’s balance sheet has expanded quickly. Its borrowing plans are expanding just as fast.

• NaBFID’s total assets grew 44% year-on-year, to ₹1.04 trillion, as of 31 December 2025.
• It plans to borrow up to ₹70,000 crore in FY26. That’s more than triple the roughly ₹23,000 crore it raised in FY25.

What’s NaBFID’s Latest Overseas Push?

NaBFID just tapped a market it had never touched before. Global investors responded fast.

• On 24 September 2026, NaBFID raised $750 million through its debut 10-year dollar bond.
• The sale drew over $2 billion in orders. It priced at 105 basis points over US Treasuries, a final coupon of 6.1220%.
• This debut bond supports a bigger goal: raising $4 billion offshore by the end of 2026.
• NaBFID has also sanctioned loans of over ₹3,000 crore each to at least four data centres, backing India’s AI-driven data-centre buildout.