IFCI net rises 13%

To cut stake in National Stock Exchange

Government-owned IFCI has posted a net profit of Rs 170 crore for the quarter ended March, 13 per cent growth against Rs 150 crore a year ago. For 2013-14, net profit rose 13 per cent to Rs 508 crore, against Rs 451 crore in 2012-13.

The company’s board of directors had recommended 10 per cent dividend for 2013-14, said Malay Mukherjee, chief executive officer and managing director. He added the non-banking financial company planned to sell 2.5 per cent stake in National Stock Exchange (NSE) and the board had approved partial disinvestment of stake in the bourse.

During 2013-14, IFCI’s loan disbursements stood at Rs 8,683 crore, against Rs 1,509 crore in 2012-13. Loans and advances, net of provisions, rose to Rs 18,635 crore from Rs 14,280 crore in 2012-13. Gross non-performing assets (NPAs) stood at 17.3 per cent as of March-end 2014, against 22.2 per cent a year earlier; net NPAs rose from 10.2 per cent to 11.4 per cent.

Mukherjee said IFCI had taken a hit on a large energy sector account (Rs 800 crore) by recognising it as sub-standard asset. It made a provisioning of 10 per cent and reversed interest income booked on this account. The total impact was about Rs 140 crore.

As of March-end, IFCI’s capital adequacy ratio was 21.3 per cent, against the required 15 per cent.

On Tuesday, the IFCI stock closed flat at 27.3 on BSE.