Money & Banking

Govt to infuse ₹200 crore in IFCI next fiscal

PTI New Delhi | Updated on March 01, 2020

The government has decided to pump ₹200 crore into Industrial Finance Corporation of India (IFCI), the country’s oldest term lending institution, through the preferential allotment route next fiscal to shore up its capital and enhance operations, sources said.

The Government of India holding in the non-banking finance company, which stood at 56.42 per cent at the end of December 2019, would increase after the capital infusion.

“The (Rs 200 crore) provision is for equity support to IFCI keeping in view the business programme and capital requirement,” as per the Budget documents presented in Parliament last month.

For the current fiscal as well, the government has earmarked ₹200 crore capital infusion for IFCI, as per the Revised Estimate.

For the third quarter ended December 2019, IFCI reported a consolidated net profit of Rs 335.38 crore as against a net loss of Rs 31.66 crore in October-December period of the previous fiscal.

Established in 1948 as a statutory corporation, IFCI currently has subsidiaries and one associate under its fold.

Published on March 01, 2020

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