Coming, an exclusive funding institution
February 01, 2021
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New Development Financial Institution to come up, with lending portfolio of ₹5-lakh crore in three years
Heeding to the calls for a Development Financial Institution (DFI), Finance Minister Nirmala Sitharaman announced the setting up of one to act as a provider, enabler and catalyst for infrastructure financing. The DFI will be capitalised with a funding of ₹20,000 crore, and is expected to have a lending portfolio of ₹5-lakh crore in three years.
This move will be an important step towards mobilising resources and to increase funding for the National Infrastructure Pipeline (NIP).
The concept of DFI is not new to India. The country’s first DFI was operationalised in 1948, with the setting up of the Industrial Finance Corporation of India (IFCI).
In an alarming development for retail investors of Kolkata-based non-banking finance company (NBFC) SREI group has apparently frozen interest payments and redemptions of its non-convertible debentures (NCD) from 1st January 2021 to 30th June 2021.