New Delhi: "Receiving Navratna status is a reflection of IRFC's financial strength and its commitment to supporting India's railway infrastructure", said IRFC's CMD and CEO Manoj Kumar Dubey speaking in a press conference here in the capital on Wednesday.
Indian Railway Finance Corporation (IRFC), a key financial institution under the Ministry of Railways, has been awarded the prestigious Navratna status by the Government of India. "This recognition further motivates us to expand our capabilities and contribute more meaningfully to the nation's growth," Dubey further said.
Over the years, it has evolved into a major financial player, registering as a Public Financial Institution under the Companies Act in 1993, an NBFC under RBI in 1998, and later as an NBFC-Infrastructure Finance Company (NBFC-IFC) in 2010. In March 2018, it was granted Mini-Ratna Category-I status. The company was listed on stock exchanges in January 2021 at an IPO price of Rs 26, which is currently around Rs 115.
With a revenue of over Rs 26,600 crore and a profit after tax exceeding Rs 6,400 crore as of March 31, 2024, IRFC is now the third-largest government NBFC in India in terms of AUM. It has played a key role in funding nearly 80% of Indian Railways' rolling stock and was the first CPSE to issue a 30-year tenor bond in overseas markets. Currently, IRFC has a market capitalization of around Rs 1,50,000 crore, an asset under management (AUM) of Rs 4.61 lakh crore, a net worth of around Rs 52,000 crore, and a balance sheet size of more than Rs 4.81 lakh crore.
Beyond its core role in railway asset financing, IRFC is also providing financial assistance for those activities which have forward and backward linkages for the railways, such as power generation and transmission, mining, fuel, coal, warehousing, telecom, hotels and catering etc. The company has already secured funding for 20 BOBR rakes for NTPC, worth Rs 700 crore, and was recently declared the lowest bidder to finance a Rs 3,190 crore loan for Patratu Vidyut Utpadan Nigam Limited (PVUNL), a subsidiary of NTPC. Additionally, NTPC Renewable Energy Limited (NTPC REL), a wholly owned subsidiary of NTPC Green Energy Limited (NTPC GEL), has accepted IRFC's bid for 27,500 crore for a Rupee Term Loan (RTL) against its Request for Proposal. IRFC is also actively exploring opportunities to fund rolling stock requirements for Indian Railways customers, container train operators, renewable energy needs of Indian Railways, Metro Rail projects, port rail connectivity, and PPP projects sanctioned by Indian Railways.
"We are committed to providing the most cost-effective financing solutions for capital-intensive railway projects. The whole railway ecosystem is on Capex upswing catering to the appetite of the largest population of the world in terms of both freight and passenger movements. As India moves towards a $10 trillion economy in the Amrit Kaal, IRFC will play an even greater role in mobilizing resources for infrastructure growth and modernization," said the Chairman.
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