IFCI Q4 loss widens to Rs 318 cr

Company had posted a loss of Rs 101 crore in corresponding January-March period

Term lender IFCI has reported a loss of Rs 318 crore for the three-month period to March due to significant jump in non-performing assets.

The company had posted a loss of Rs 101 crore in the corresponding January-March period of the preceding financial year, IFCI said in a statement.

Total income during the quarter declined to Rs 597 crore, as against Rs 1,024 crore a year ago.

Asset quality of the country's oldest financial institution further deteriorated. Its gross non-performing assets (NPAs) or bad loans soared significantly to 31.9 per cent, up from 13.1 per cent during the same period a year ago.

Net NPAs too rose to 27 per cent for the quarter under review from 9.5 per cent a year ago.

Consequently, the provisions towards bad loans increased to Rs 499.63 crore from Rs 484.35 crore for the last quarter of 2015-16.

For the full financial year 2016-17, the company posted a net loss of Rs 458 crore as compared to profit of Rs 337 crore in the previous financial year.

Total income also declined to Rs 2,874 crore for the year ended March, from Rs 4,007 crore year ago.

Due to new slippages requiring only 10 per cent provision, the Provision Coverage Ratio reduced to 42 per cent, from 57 per cent at end of 2015-2016.