The National Bank for Financing Infrastructure and Development (NaBFID) is awaiting clearance for the appointment from the regulator Reserve Bank of India (RBI).
The Bank Board Bureau (BBB), the headhunter for state-owned banks and financial institutions, will soon initiate the process of the managing director (MD) and deputy managing directors (DMDs) of the newly set-up Rs 20,000-crore NaBFID, which is preparing to commence business in the April-June quarter.
According to sources, the National Bank for Financing Infrastructure and Development (NaBFID) is awaiting clearance for the appointment from the regulator Reserve Bank of India (RBI).
After approval from the RBI, NaBFID will intimate BBB for issuance of advertisement for the post of MD and DMDs, sources said.
The MD, DMDs and whole-time directors will not hold office after attaining the age of 65 years and 62 years, respectively.
According to the National Bank for Financing Infrastructure and Development (NaBFID) Act 2021, the institution will have one MD and not more than three DMDs.
The government has committed a Rs 5,000-crore grant over and above Rs 20,000-crore equity capital.
The government in October appointed veteran banker K V Kamath as the chairperson of the NaBFID for three years. It has also appointed two government nominee directors on the board.
Finance Minister Nirmala Sitharaman in the Union Budget 2021-22 said the government will set up a development financial institution (DFI) to catalyse investment in the fund-starved infrastructure sector.
The newly-incorporated DFI is gearing up to commence business in the April-June quarter and is targeting financial assistance of Rs 1 lakh crore in its first year of operations.
During the April-June quarter, the processing of loans will commence, sources said, adding that the institution is targeting loan assistance of a whopping Rs 1 lakh crore in the next financial year.
In addition, the potential bridge financing for the monetisation programme is being looked into, the sources said.
This is going to give a massive push to infrastructure projects, which are part of the National Infrastructure Pipeline (NIP), they added.
The creation of such a huge organisation, right from the Budget announcement to the passage of the Bill and the appointment of board members in less than 10 months, is itself a feat, the sources said.
The sources added that the alacrity with which the legislation was brought in the second leg of the Budget session indicates that groundwork was done much in advance.
The DFI has been set up with a view to supporting the development of long-term non-recourse infrastructure financing in India, including the development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure.