IFCI expects to add Rs 6,000 cr to its loan book next fiscal

IFCI expects to add Rs 6,000 cr to its loan book next fiscal

New Delhi, Mar 11 (PTI) The countrys oldest public sector financial institution IFCI in its pursuit to grow its net interest income plans to expands its loan book by about Rs 6,000 crore in the next fiscal beginning April.

The expansion of asset book will also include take out finance where IFCI will pick up stake from other lenders in a good operational infrastructure projects.

"On an average, we will be targeting loan sanction of Rs 500 crore per month beginning next fiscal. This would include take out finance also," IFCI MD and CEO E S Rao told PTI.

When every bank is conservative towards the lending, IFCI would do judicious lending as this company has a long history of nation building through the development of infrastructure over last seven decades, he said.

"So going ahead, the focus will be to maintain a positive net interest income, report operational profits and maintain adequate capital adequacy," he said.

During the current fiscal, the company had sanctioned loans of Rs 5,278 crore and disbursements were at Rs 3,618 crore as of December 31, 2017.

IFCI is derisking its balance sheet by being selective in its financing of industry, agriculture and infrastructure and financing projects that have good credit ratings.

"We are refinancing infrastructure projects that are up and running to minimise risks," Rao said.

Asked about capital infusion, he said, the government will soon pump in Rs 100 crore through preference shares as the Extraordinary General Meeting of the company has just cleared the proposal.

Following the infusion, the government holding in the institution will increase from existing 55 per cent to about 56 per cent.

For the third quarter ended December 2017, IFCI reported standalone net loss of Rs 176.87 crore as against net loss of Rs 45.17 crore in the same period last fiscal.

However, the total income rose slightly to Rs 655.53 crore during the quarter under review, as against Rs 635.55 crore in the year-ago period. PTI DP CS BAL BAL