IIFCL net profit up 79% at Rs 1,047 cr in 2012-13

India Infrastructure Finance Company Ltd (IIFCL) today said it has recorded 79% jump in its net profit at Rs 1,047 crore for the year ended March 2013.

The state-owned infrastructure finance company had earned a net profit on of Rs 585 crore on standalone basis in the previous fiscal.

The strong net profit performance in 2012-13 is on the back of robust growth in total revenues supported by lower growth in total expenses, IIFCL Chairman and Managing Director S K Goel said here.

The total interest income grew by 29% to Rs 3,250 crore during the year. At the same time, Net Interest Margin improved to 4.45% for 2012-13.

The company disbursed around Rs 30,400 crore including Rs 2,126 crore under Takeout Finance Scheme.

IIFCL has been able to post robust growth under its Takeout finance scheme with 277% growth in disbursements at Rs 2,126 crore as against Rs 564 crore in previous year.

On a cumulative basis, he said, IIFCL has sanctioned around Rs 8,000 crore and disbursed around Rs 2,800 crore under the Scheme.

The Takeout Finance Scheme offers the infrastructure developers benefits of interest rates lower and stable than under direct lending, and freeing up of their exposure limits with banks, he said.

With regard to asset quality, the company has a gross NPAs of 0.98% and has so far made provisions to the tune of around Rs 86 crore.

During 2012-13, the company raised long-term resources to the tune of around Rs 7,100 crore from domestic market and multilateral institutions, of which more than 70% has been raised on the strength of its own balance sheet without sovereign guarantee.

IIFCL, for the first time raised domestic resources aggregating to Rs 1,100 crore for ultra-long term exceeding 25 years, without sovereign guarantee, which would enable lending for longer tenure to infrastructure sector, he added.

The company has secured registration from SEBI for its Infrastructure Debt Fund viz. IIFCL Mutual Fund, he said, adding, the regulator has also granted approval to IIFCL Asset Management Company Limited (IAMCL) to act as the Asset Management Company for the Mutual Fund.

IIFCL has also been able to secure support of other institutions to act as strategic investors and is in the process of launching its maiden scheme shortly, he added.