A Business Encyclopedia

Infrastructure Finance Company

Definition: The Infrastructure Finance Company is yet another financial institution engaged in the principal business of infrastructure loan. The credit facility (term loans, project loans, etc.) granted by the non-banking financial companies to the borrowers in the specific infrastructure sectors Viz. Transport, Energy, Water and Sanitation, Communication, and Social and Commercial Infrastructure are called as the Infrastructure Laon.

As per RBI, any non-banking financial company can be registered as an Infrastructure Finance Company, subject to, these should be a non-deposit accepting loan company and must comply with the following conditions:

  • Minimum, 75% of the total assets of the company, should be deployed in the infrastructure loans.
  • The company must have a minimum net worth of Rs 300 Crore.
  • The capital to risk weighted asset ratio or CRAR of the company should be at 15% with Tier-I capital at 10%.
  • The company should have a minimum credit rating of “A” or equivalent of CRISIL, or equivalent to any other accrediting rating agencies.

The company’s request to be recognized as an infrastructure finance company must be advocated by the Statutory Auditor’s Certificate confirming the company’s pattern of the asset as on March 31, of the latest financial year.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

decentralisation of authorityrating scale likertclassical and neoclassicalwhat does laissez meansnowballing definitionconglomerate diversification strategy exampleswhat is a participative leaderadvantage of laissez faire leadership styledebenture meansneo classical organizational theoryjoharri windowfactors affecting collective bargainingordinal utility theoryoperant conditioning theory of skinnerpersuasion tagalogkiosks definitionhenri fayol principles of organizationsnowball techniquespearman correlation formulacash cows examplessamuelson trade cycle modeltypes of hr metricsdefine camelconcept of indifference curvetypes of forex risksegmenting definitioncan marginal utility be negativefive forces model of industry competitionliquidated definitionprocess of bpran indifference curve isdefine segmentingthe meaning of judgementaltrait theories definitionwhat is meant by markuptypes of spoken communicationdiminishing marginal utility meansmeaning of bargain in hindipsychoanalytic theory definition psychologychit fund meaningneft maximum amountwhat does monetize debt meanquota sampling definitionexamples of coercive poweradvantages and disadvantages of ranking method of job evaluationdefinition of hr scorecarddelphi technique meaningentrepreneurial venture definitionprofitable ratiorevitalizing meaningdecentralised meaningwhat does rowan meanmacro environmental factors in marketingdefinition of fmcgkanban 2 bin systemadvantages and disadvantages of sales promotiondef of chronicdeficit financing meansinelastic demand productsintrapreneurship definitionhr outsourcing definitionoperant conditioning simple definitiongraph of perfectly elastic demandbusiness process reengineering definitionflip over poison pillporters five forecesapplications of income elasticity of demand with examplesinformal communication in an organizationdefine speculation in economicsmcgregor theory x and yexplain informal communicationdefine geocentric theory