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Aided by a sharp rise in net interest margin, IFCI on Tuesday reported 7.4 per cent increase in net profit for the first quarter ended June 30 at ₹102 crore (₹95 crore in the year-ago quarter).
Total income for the quarter grew 24.07 per cent to ₹913.85 crore (₹736.55 crore)
Net interest margin rose to 3.3 per cent (2.1 per cent).
No slippages “The main reason for the sharp rise in net interest margin was the fact that there were no slippages in this quarter. No NPA was added this June quarter,” Malay Mukherjee, Managing Director and CEO of IFCI, told BusinessLine here.
This was not the case in the June quarter last year, when slippages had led to reversal of interest income, thereby impacting the net interest margin of that period.
However, during the quarter under review, IFCI had increased the provisioning to ₹129.88 crore (₹78.21 crore).
This increase was mainly due to provisioning for diminution in value of investments and not due to any increase in bad loans, Mukherjee said.
Asked whether IFCI will look to raise equity capital through a follow-on-public offering (FPO) or institutional placement this fiscal, he said:
“My capital situation is comfortable. Up to March next year, I will not be looking at any equity capital raising either via FPO or any other form.”
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