Ifci Constitutes High-Level Team To Sketch Roadmap

The ailing IFCI Ltd has constituted a high-level committee headed by its chairman and managing director V P Singh to chart out a roadmap for the institution.

The other members on the committee include board members Vipin Malik and S Ravi, who are both chartered accountants, apart from the institution's two executive directors - M V Muthu and R M Malla.

The committee has been set up even as PricewaterhouseCoopers has been appointed to make business projections for the next few years besides chalking out a strategy for IFCI.

PwC was appointed in August last year soon after the government and other stakeholders decided on providing an assistance of Rs 1,000 crore to the institution. PwC was to submit its report in a month, but the tenure was extended by three months. Sources said the global consultant is yet to submit its report.

The panel would look at options including a shift to universal banking, setting up an asset reconstruction company to transfer sticky assets and clean up the balance sheet as well as a change in the nature of operations of IFCI and confine its role to term lending.

An expert committee headed by former State Bank of India chairman D Basu had recommended that the institution confine itself to term financing.

Sources said that some initial meetings have been held and the committee will finalise its recommendations shortly. IFCI has also appointed other committees as part of a restructuring drive including one to handle non-performing assets and focus on recovery. The institution has embarked on a loan recovery plan by filing some 100-odd suits in the last couple of months, sources said.