New Delhi: Public sector lender Union Bank of India has entered into a Memorandum of Understanding (MoU) with India Infrastructure Finance Company Limited (IIFCL) to collaborate on financing eligible infrastructure projects.
Under the partnership, both organizations will work together through loan syndication, underwriting, and consortium financing arrangements to strengthen the availability of long-term funds for infrastructure development.
The collaboration is expected to enhance financial support for large-scale infrastructure projects and contribute to India’s economic growth.
Union Bank of India and IIFCL Join Hands for Infrastructure Financing
The MoU between Union Bank of India and IIFCL focuses on creating a stronger financing framework for infrastructure projects.
Through this partnership, both institutions aim to:
- Provide long-term financial assistance to eligible infrastructure projects.
- Improve access to structured project financing.
- Support loan syndication and consortium-based funding.
- Strengthen the overall infrastructure financing ecosystem in India.
The initiative reflects the growing importance of partnerships between banks and specialized financial institutions in meeting the country’s infrastructure funding requirements.
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Partnership to Support India’s Infrastructure Growth
Infrastructure development requires significant long-term capital, and the collaboration between Union Bank of India and IIFCL is aimed at addressing this requirement.
The partnership will help combine the banking expertise of Union Bank of India with IIFCL’s specialized infrastructure financing capabilities.
Both organizations have committed to improving the flow of funds for infrastructure projects and supporting sustainable economic development.
IIFCL’s Role in Infrastructure Financing
India Infrastructure Finance Company Limited (IIFCL) is a wholly owned Government of India company established in January 2006 to provide long-term finance for commercially viable infrastructure projects.
The company supports infrastructure development across various sectors by offering financial assistance and facilitating project funding.
IIFCL has been registered with the Reserve Bank of India (RBI) as a:
- Non-Banking Financial Company (NBFC)
- Non-Deposit Taking Infrastructure Finance Company
Since September 2013, IIFCL has operated under RBI’s applicable prudential norms.
Union Bank of India Shares Trade Lower
Following the announcement, shares of Union Bank of India were trading lower.
- Stock Price: ₹167.95 per share
- Exchange: BSE
- Movement: Down 0.49%
The bank continues to focus on strengthening its lending portfolio and expanding its role in supporting India’s economic development.
MoU to Strengthen Infrastructure Financing Ecosystem
The partnership between Union Bank of India and IIFCL highlights the importance of collaborative financing models for India’s infrastructure expansion.
By combining resources, expertise, and financial capabilities, both organizations aim to support critical infrastructure projects and contribute to the country’s long-term growth objectives.
About Union Bank of India
Union Bank of India is one of India’s leading public sector banks, headquartered in Mumbai. Established in 1919, the bank provides a wide range of banking services, including retail banking, corporate banking, MSME financing, agricultural loans, and digital banking solutions. The bank plays an important role in supporting economic growth through credit expansion and financial inclusion.
About India Infrastructure Finance Company Limited (IIFCL)
India Infrastructure Finance Company Limited (IIFCL) is a Government of India-owned infrastructure finance institution established to provide long-term funding support for viable infrastructure projects. It works towards developing India’s infrastructure sector by facilitating project finance, credit enhancement, and other financial solutions for infrastructure development.
