The Indian Railway Finance Corporation (IRFC), a key financial institution under the Ministry of Railways, has been granted the prestigious Navratna status by the Government of India. Speaking at a press conference in the capital on Wednesday, Mr. Manoj Kumar Dubey, CMD & CEO of IRFC, stated, “Receiving Navratna status is a reflection of IRFC’s financial strength and its commitment to supporting India’s railway infrastructure.” He further added that the recognition would motivate the company to expand its capabilities and contribute more significantly to national growth.
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Established as a Public Financial Institution under the Companies Act in 1993, IRFC was later classified as an NBFC under RBI in 1998 and subsequently as an NBFC-Infrastructure Finance Company (NBFC-IFC) in 2010. It was granted Mini-Ratna Category-I status in 2018 and got listed on stock exchanges in January 2021 at an IPO price of Rs. 26, which has since surged to approximately Rs. 115.
IRFC has emerged as a major financial player, with a revenue of over Rs. 26,600 crore and a profit after tax exceeding Rs. 6,400 crore as of March 31, 2024. It is now the third-largest government NBFC in India in terms of Assets Under Management (AUM). The company has financed nearly 80% of Indian Railways’ rolling stock and was the first CPSE to issue a 30-year tenor bond in overseas markets. Presently, IRFC has a market capitalization of around Rs. 1,50,000 crore, an AUM of Rs. 4.61 lakh crore, a net worth of approximately Rs. 52,000 crore, and a balance sheet size exceeding Rs. 4.81 lakh crore.
Beyond railway asset financing, IRFC is expanding its financial support to sectors linked to railways, including power generation and transmission, mining, fuel, coal, warehousing, telecom, and hospitality. The company has already secured funding for 20 BOBR rakes for NTPC worth Rs. 700 crore and was 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) has accepted IRFC’s Rs. 27,500 crore bid for a Rupee Term Loan (RTL).
IRFC is also exploring opportunities to finance rolling stock requirements, Metro Rail projects, port rail connectivity, and PPP projects sanctioned by Indian Railways. Emphasizing IRFC’s role in India’s growth trajectory, Mr. Dubey remarked, “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.”
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