IIFCL eyes Rs 75,000 crore sanctions in FY26 after record year, says MD Rohit Rishi, NPA Drops to 0.40 per cent
New Delhi, May 30
India Infrastructure Finance Company Ltd is targeting annual sanctions of Rs 75,000 crore in FY26, a 30 per cent jump over last year, as the removal of key lending restrictions opens up a "very good opportunity" to expand its role in infrastructure financing, Managing Director Rohit Rishi said on Friday.
"Now, after this performance, I feel that in the coming time, there are many opportunities for us to improve growth and profit. The government's vision and the dream of a developed India has many opportunities for us to play our role actively," Rishi said at a conference to announce IIFCL's FY2025-26 results.
IIFCL posted its highest-ever annual sanctions of Rs 57,680 crore in FY 2025-26, up about 13 per cent year-on-year, while annual disbursements rose 16 per cent to Rs 32,972 crore, reflecting sustained momentum in infrastructure financing. Cumulative disbursements reached approximately Rs 1.89 lakh crore as of March 31, 2026. On a consolidated basis, disbursements crossed Rs 2.14 lakh crore, underscoring the company's growing contribution towards India's infrastructure expansion. Asset quality also improved sharply, with gross NPA at 0.40 per cent versus 1.10 per cent last year, and Net NPA turning zero "after a long time in this organization," Rishi said.
A major tailwind is the April 15 removal of the safety rule that capped IIFCL's exposure at 20 per cent of project cost. "After that, we can take a bigger share in the projects. We can underwrite very big projects and then down-sell them to other lenders. This will increase our loan book and increase our non-interest fee-based income," he said. The company has already approved loans worth Rs 38,000 crore since the restriction was lifted and expects to "easily cross" Rs 1 lakh crore in cumulative repayments this year. Disbursements are targeted to grow by at least 20 per cent in FY26.
IIFCL is also tapping emerging sectors. "For example, in data centers, we already have got a few inquiries. We are also doing some urban development projects, some social infrastructure projects, that is hotels, schools, colleges, hospitals, etc. And in the renewable sector, we already have a very good loan book," Rishi said. The pipeline in conventional sectors like roads, ports and airports remains strong.
To support expansion, IIFCL is recruiting lateral talent in risk management, credit appraisal and technology development. "We are also working on developing the appropriate risk management tools and guardrails as we expand our loan book," the MD added.
"The allocation of the budget for the infrastructure is growing consistently at the rate at which our loan book has grown by 17-18 per cent in the last 5 years," he said, noting that the policy push positions IIFCL to play a "more vibrant and bigger role in the sphere of infrastructure."
— ANI
Reader Comments
Impressive numbers—57,680 crore in sanctions is no joke. As someone who follows Indian markets from abroad, the 0.40% NPA is world-class. But I wonder: with rapid loan book expansion and hiring in risk management, will the discipline hold? The real test will come when rates rise or economic growth dips. Still, hats off to the management for the transparency in reporting.
Good to see government-backed NBFCs like IIFCL stepping up for infrastructure financing. My father works in construction and says projects in smaller towns still face funding delays. Hopefully, with Rs 75,000 crore target for FY26, some of that reaches states like Bihar and Odisha. Also, happy to see social infra like hospitals and schools getting attention! 🇮🇳
Strong results. The 16% disbursement growth shows execution is matching ambition. Zero net NPA is remarkable for a DFI. But I'd like to see more granular data on sector-wise exposure—how much is roads vs renewable vs data centers? The focus on risk management tools is smart. India needs this kind of disciplined, state-backed financing to meet the $1.4 trillion infra investment target by 2030.
As a banking professional, I find this growth story solid but need to see how they manage credit risk when loan book doubles. The lateral hiring in risk management is a good sign. However, I wish there was more emphasis on green infrastructure—solar, wind, EV charging stations. Our renewable energy targets need dedicated financing. Also, hope they tie up with state governments to fund last-mile connectivity projects.
R Rohan X