IIFCL to Grow Book Size by Rs 1 Lakh Cr in 3 Years

New Delhi, Jan 6 (PTI) Financial Services Secretary M Nagaraju on Monday said state-owned infra financier IIFCL has the potential to grow its book size by Rs 1 lakh crore in the next three years, given its performance in the past four years.

So far India Infrastructure Finance Company Ltd (IIFCL) has sanctioned loans worth Rs 2.8 lakh crore and disbursement to the tune of Rs 1.4 lakh crore of which 50 per cent has happened in the last 4-5 years, Nagaraju said while speaking at the 20th foundation day of the institution.

"Next three years you (IIFCL) should lend Rs 1 lakh crore...to fulfill the Vikshit Bharat aspiration. You have the capacity, experience and resilience to undertake very complex products and finance the infrastructure in the country," he said.

He urged the financial institutions, including IIFCL to move away from secure products or completed projects to undertake new or greenfield projects so that fresh asset creation is given a push.

Lenders should also focus on creating world-class infra projects, he said, adding, that innovative products for financing can be looked at.

He underlined the need to focus on risk management and guard against fraud.

There is also a need for pooling of resources by NBFCs and banks so that they can finance large projects, he added.

Speaking at the occasion, M P Tangirala Additional Secretary Department of Financial Services (DFS) said Indian financial institutions, including banks, are in a stronger position than ever.

Observing that infrastructure development is the catalyst for growth, Tangirala said, the government under the leadership of Prime Minister Narendra Modi has taken a number of initiatives, including National Infrastructure Pipeline (NIP).