India Infrastructure Finance Company Limited (IIFCL), under the leadership of its Managing Director PR Jaishankar, has set an ambitious goal to double its lending portfolio to Rs 1 lakh crore within the next three years. Highlighting the company’s growth trajectory, Jaishankar shared insights into the company’s performance and the evolving landscape of India’s infrastructure sector.
Ambitious Growth Plans for IIFCL
Speaking on IIFCL’s achievements, Jaishankar noted, “Our disbursement is around Rs 150,000 crore. The balance sheet stands at Rs 80,000 crore, with a loan book of Rs 70,000 crore. We aim to achieve Rs 1 lakh crore in the coming months and double it within three years.”
This ambitious target reflects confidence in the infrastructure sector’s growth, driven by the government’s proactive reforms and financial initiatives.
Government’s Push for Infrastructure Development
Jaishankar credited the government’s efforts for the sector’s robust performance. He highlighted:
- Major financial support: The government has emerged as a key financier for large-scale projects.
- Reforms and initiatives: Policies promoting digital, sustainable, and resilient infrastructure have boosted sector growth.
“The current budget carries the same optimistic expectations,” he added, indicating a promising outlook for infrastructure financing.
Infrastructure Sector 2.0: Digital and Sustainable
The infrastructure sector is entering a transformative phase, dubbed Infrastructure 2.0, with a focus on:
1. Digitally Driven Infrastructure: Emphasis on technology-enabled solutions.
2. Sustainability and Resilience: Environmentally friendly and durable project designs.
3. Commercial Viability: Ensuring better risk management and financial transparency.
Jaishankar also stressed the importance of robust monitoring systems and due diligence to enhance project efficiency and governance.
Decline in NPAs: A Financial Milestone
Jaishankar highlighted the sector’s improved financial health, driven by government initiatives:
- Drastic Reduction in NPAs: Banking sector NPAs, which were around 36% in 2010-2011, have significantly decreased due to reforms.
- IIFCL’s Achievement: The company has reduced its NPAs from 20% (four to five years ago) to less than 0.5% today.
This reduction underscores the effectiveness of stringent risk management systems and good governance practices.
Project Lending: A Safe and Transparent Approach
Jaishankar emphasised that project lending in the infrastructure sector is governed by:
- Consortium-Based Financing: Multiple banks and committees ensure thorough scrutiny of projects.
- Robust Risk Management: Comprehensive safeguards for transparency and efficiency.
“Infrastructure is the safest sector to lead today,” he remarked, highlighting the sector’s resilience and stability.
Conclusion
IIFCL’s ambitious goal to double its lending underscores the strong foundation laid by government reforms and the evolving capabilities of the infrastructure sector. With declining NPAs, robust governance, and a transformative focus on sustainability and digital integration, IIFCL and the broader infrastructure sector are poised to drive India’s economic growth into a new era.