Banks Face Near-Term Infrastructure Credit Caps, Must Recycle Capital, Says NaBFID Official

At the Infrastructure Conclave 2026, Monika Kalia of the National Bank for Financing Infrastructure and Development warned that banks are approaching the maximum credit exposure they can grant to infrastructure developers. She emphasized that the growing demand for infrastructure investment will quickly exhaust banks' capacity under current limits. To prevent banks from needing to raise large amounts of new capital, Kalia recommended exploring new financing structures, including securitisation and synthetic arrangements.

She also called for seasoned assets with proven cash-flow stability to be transferred from bank balance sheets to other investors. Both the availability and the cost of capital were noted as critical factors for sustaining infrastructure financing.