Project Financing
Finance mininstry to meet large banks, NBFCs Thursday on financing infrastructure projects, say sources
This story was originally published at 16:53 IST on 10 September 2025
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NEW DELHI – Department of Financial Services Secretary M. Nagaraju will chair a meeting with large public and private sector banks and non-banking finance companies Thursday to discuss infrastructure financing, five people aware of the matter said Wednesday. The meeting will be held in the capital from 1130 IST, sources said.
Nagaraju will meet top executives of State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, ICICI Bank, HDFC Bank, National Bank for Agriculture and Rural Development, Power Finance Corp. of India, REC Ltd., Indian Renewable Energy Development Agency Ltd., India Infrastructure Finance Co. Ltd., and the National Bank for Financing Infrastructure and Development, sources said.
The meeting comes weeks before the Reserve Bank of India's project financing norms come into effect. According to the central bank's directions, which will come into effect from Oct. 1, lenders will have to maintain standard asset provisioning requirement of 1% during the construction phase of all projects including residential projects, with a general provision of 1.25% during the construction phase of only commercial real estate projects.
Currently, banks keep a provision of 0.4% on the outstanding exposures during construction. For projects that are currently under way, the standard provisioning requirement will remain 0.4%.
Finance Minister Nirmala Sitharaman had last week called upon banks to participate in India's growth story by further expanding credit to infrastructure projects. Scheduled commercial banks have recorded a "massive improvement in their asset quality" which will help provide cheaper and steadier credit to households, micro, small, and medium enterprises, and infrastructure projects, she had said at an event in Chennai. "It will also lead to lower systemic risks and sustained confidence in India's financial system," she had said.
The Prime Minister Narendra Modi government has been pushing for higher infrastructure spending through robust capital expenditure and has repeatedly urged the private sector to take the baton forward. The government has set a capital expenditure target of INR 11.21 trillion for 2025-26 (Apr-Mar) while the revised Budget target for FY25 was INR 10.18 trillion. End
Reported by Priyasmita Dutta
Edited by Ashish Shirke
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