India looks to establish new development bank

India's parliament has passed a bill seeking to establish a National Bank for Financing Infrastructure and Development (NBFID) to support  infrastructure financing in the country. This includes development of bonds and derivatives markets which are necessary for infrastructure financing.

The NBFID will be set up as a corporate body with authorized share capital of one lakh crore rupees, with financial and developmental objectives. Financial objectives will be to directly or indirectly lend, invest, or attract investments for infrastructure projects located entirely or partly in India. Developmental objectives include facilitating the development of the market for bonds, loans and derivatives for infrastructure financing.