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Infrastructure term lender IFCI Ltd today reported an over two-fold rise in its losses to Rs 276.90 crore during first quarter ended June 30, 2017. The company's net losses in the corresponding quarter of 2016-17 were at Rs 110.28 crore. Likewise, the total income of the company also halved nearly to Rs 467.52 crore during the June quarter of 2017-18 due to fall in earnings from operations, as against Rs 832.44 crore in the same period of 2016-17, it said in an exchange filing. There was write-off/provision for bad and doubtful assets of Rs 322.06 crore for April-June quarter of this fiscal, lower than Rs 387.09 crore in the same period year earlier. IFCI said that it is one of the lenders in 6 out of 12 cases where RBI has reportedly directed certain banks to refer to National Company Law Tribunal. "The outstanding in these 6 cases was Rs 1,888 crore as on June 30, 2017 against which Rs 300 crore of provisions was held.
These loans are fully secured. "In the absence of any directive by RBI to IFCI, the company, as a matter of prudence, has made additional provisions of Rs 32 crore in one borrower's account where it could visualise diminution in the value of security and it is in the process of assessment of expected loss, if any, in all these cases because of resolution under IBC," it said. IFCI stock ended 6.92 per cent down at Rs 22.85 on BSE.
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