India Infrastructure Finance Company Limited (IIFCL) has sanctioned a cumulative Rs 1,11,741 crore across 554 projects under its direct lending, on a standalone basis, as of 31 March 2023. The amount shows the scale of what this government infrastructure lender has committed to the projects it has financed.
IIFCL is a government company and not a bank. It was incorporated on 5 January 2006 under the Companies Act, 1956, as a wholly owned company of the Government of India, according to the official profile of the Department of Financial Services.
The company lends long term money to viable infrastructure projects, and individuals who read about it as a bank or as a stock often miss this basic position.
Who regulates it and what it can lend to
IIFCL has been registered with the RBI since September 2013 as a non-banking finance company that does not accept deposits and works in infrastructure finance, which is classified as an NBFC-ND-IFC. RBI is named as its regulator, while the Ministry of Finance administers the scheme's mandate through the company.
Lending by IIFCL is governed by the SIFTI scheme, the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle, which the government had approved for the company.
The sectors that are eligible follow government's Harmonised list of infrastructure sub-sectors, and this list is amended from time to time. The broad categories include transport, energy, water, sanitation, communication, and social and commercial infrastructure.
Capital base and what the data does not show
Paid-up capital is the amount that the government, as the owner, has actually put into the company.
Since the entire shareholding is with the Government of India, there are no shares of IIFCL that the investors can buy on the A regulated electronic marketplace in Mumbai where buyers and sellers trade shares and other securities at publicly visible prices. Read the full meaning of NSE (National Stock Exchange) or the BSE Ltd, formerly the Bombay Stock Exchange, is a Mumbai based electronic exchange where shares and other securities are traded under SEBI oversight. Read the full meaning of BSE (Bombay Stock Exchange). Individuals searching for the company as an investment option will find that its relevance lies in how infrastructure projects are financed.
Alongside this, there is a gap in the latest information. The IIFCL annual reports give figures up to 31 March 2023, so the 2023 numbers are the latest verified ones here.
