Companies

IFCI returns to black in Q2

K.R.Srivats New Delhi | Updated on January 09, 2018 Published on November 14, 2017

Will continue to be aggressive on recoveries, says MD

Aided by sharp increase in bad loan recoveries and gains from stake sale in TFCI, State-owned IFCI on Tuesday reported a net profit of ₹11.90 crore in the second quarter ended September.

It was, however, lower than the ₹14.86-crore profit recorded in the same quarter of last fiscal.

The net profit this September quarter has come after losses in the previous three successive quarters.

IFCI had during the quarter ended June 30 recorded a net loss of ₹276.90 crore. “We will continue to be aggressive and focus on keeping the tempo as regards recoveries in the second half as well,” E Sankara Rao, Managing Director and CEO, IFCI, told BusinessLine after a board meeting here.

Total income in the reporting quarter rose 11.17 per cent to ₹899.77 crore (₹809.34 crore).

In the first half this fiscal, IFCI made recoveries of ₹587 crore, substantially higher than the ₹141 crore recovered in the same period last fiscal. “All were cash recoveries,” Rao said.

In the full 2016-17, IFCI made recoveries of ₹834 crore.

Rao said that it would be difficult to give a guidance for the full year on net interest margin or profits.

Asked about the insolvency cases referred to the National Company Law Tribunal (NCLT), Rao said that IFCI had exposure in six out of the 12 cases initially referred by the RBI.

IFCI has already made a provision of ₹627 crore out of its total exposure of about ₹1,800 crore in these six cases, IFCI officials said.

For the quarter under review, there were two new NPAs of ₹100 crore each.

IFCI’s gross NPAs came down to ₹7,929 crore from ₹8,114 crore as of end-June.





Srivats.kr@thehindu.co.in

Published on November 14, 2017
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