Indian Railway Finance Corporation Limited Company Profile: Products, Promoters and Clients
Indian Railway Finance Corporation Company:
Indian Railway Finance Corporation (IRFC) serves as the dedicated funding arm of Indian Railways. Established in December 1986, the company mobilizes funds from domestic and international markets to meet the majority of Indian Railways' Extra Budgetary Resources requirements. IRFC is a Schedule ‘A’/Miniratna Public Sector Enterprise under the administrative control of the Ministry of Railways, Government of India.
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Q1. What are the Product and service offerings of Indian Railway Finance Corporation Ltd?
IRFC provides essential financial services to Indian Railways through leasing, lending, and borrowing activities. Through its leasing model, IRFC finances rolling stock and project assets over a 30-year period, recovering principal and interest during the lease term and selling assets to the Ministry of Railways thereafter.
It also extends financial support to entities like RVNL, Konkan Railway, and others in the railway sector. IRFC secures funds through various channels including bond issuances, term loans, and ECBs, aiming to minimize borrowing costs and optimize financial support for Indian Railways' infrastructure needs.
Q2. Who are the Promoters/Management of Indian Railway Finance Corporation Ltd?
Government of India holds 86.36% holding in the company
Ms. Uma Ranade, an IRAS officer since 1986, currently serves as Chairman and Managing Director (Additional Charge). With over 35 years in Indian Railways, she holds dual roles as Additional Member (Budget) and (Finance) in the Ministry of Railways. Ms. Ranade has extensive experience as Financial Advisor to Western, Central, and South Central Railways, and as Principal Financial Advisor to Western and Central Railways.
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She graduated from St. Stephen’s College, Delhi (BA (Hons) History) and completed leadership programs at INSEAD Singapore, Carnegie Mellon University's Tepper School of Business, and the Indian School of Business, Hyderabad.
Ms. Shelly Verma is the Director (Finance) at our company, bringing over 30 years of experience in Power Sector Financing. She holds a Bachelor’s degree in Commerce from the University of Delhi and is a fellow member of the Institute of Chartered Accountants of India. Prior to joining our Board, she served as Executive Director (Finance) at Power Finance Corporation Limited, showcasing her expertise in financial leadership and management.
Q3. Who are the Clients of the company?
The AUM break-up for FY 2024 is as follows: Loans to RVNL constitute 1.06%, Advances against Railway Infrastructure Assets to be leased account for 43.05%, Lease Receivables from R/S Assets make up 35.52%, and Lease Receivables from Project Assets comprise 20.37%.
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