Money & Banking

IIFCL to disburse Rs 5,500 crore in four months

| | Updated on: Dec 16, 2013

State-owned India Infrastructure Finance Company Ltd (IIFCL) today said it would disburse Rs 5,500 crore loans to various infrastructure projects in four months.

“The loan disbursement target for the current fiscal is Rs 9,500 crore,” IIFCL executive director, H K Bhanwala said.

IIFCL has already disbursed Rs 4,000 crore between April-November period, he said, adding that the remaining Rs 5,500 crore would be disbursed by the end of March.

He said, IIFCL has disbursed loans to some of the stalled projects cleared by the Cabinet Committee on Investment (CCI).

Loan disbursal would pick up as more and more projects cleared by the CCI reach financial closure, he added.

Talking about non-performing assets in the infrastructure sector, Bhanwala said, “We may see the bad assets ratio going up in the short-term, but things will be better than other institutions working in the same space.”

However, if issues plaguing various infra projects are addressed, things on the bad asset front will certainly improve, he said.

The public sector lender engaged in infra financing had a gross NPA of around 1.1 per cent by the end of first half of this fiscal. The company, which has a restructured book of around Rs 3,000 crore as of now, has seen addition of Rs 600 crore in this account in the current financial year.

“We may add around Rs 400 crore of restructured book going ahead,” Bhanwala said.

IIFCL is currently in the market to raise up to Rs 3,000 crore through bond sale. It has received around Rs 2,142 crore as of December 13 from investors.

Published on December 16, 2013

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