Ifci Disbursals Halve In Fy02
The sanctions and disbursals of the beleaguered IFCI Ltd has more than halved in 2001-02. Sanctions dropped 55.8 per cent to Rs 780.46 crore in March 31, 2002 from Rs 1,766.45 crore the previous year, while disbursements dropped 50.12 per cent to Rs 1,075.67 crore from Rs 2,156.8 crore.
According to the institution, the lower sanctions and disbursements were in line with its approach to consolidate business strategy. Iron and steel accounted for 13 per cent of the sanctions, while the highest share in sanctions was the miscellaneous service at 40.8 per cent.
The institution added that 19.78 per cent of the sanctions were for new projects, 13.51 per cent for expansion, diversification and modernisation of existing projects, while 66.71 per cent of the sanctions was for balancing equipment, general corporate purposes, margin money for working capital, and financial restructuring.
The FI's exposure is still the highest in iron and steel at 21.69 per cent or Rs 4,109.75 of the total outstanding. However, this exposure does not contain the exposure of guarantees to the sector which was at Rs 365.20 crore. This was followed by textiles at 11.40 per cent (Rs 2,160.5 crore) and steel/metal products at 6.19 per cent. IFCI will not take finance any new greenfield projects.
The five largest industrial sector which the FI has an exposure are iron and steel at 24.14 per cent, power at 14.14 per cent, synthetic textiles at 5.36 per cent, cotton textiles at 4.62 per cent. The outstanding assistance by IFCI as at the end of March 2002 reduced to Rs 17548 crore as against Rs 18755 crore the previous year due to the prepayment of Rs 560 crore in the year.
A committee of directors had taken up the top 100 non-performing assets to analyse these cases and suggest suitable action. The FI had made one time settlement/negotiated settlement in 92 cases during 2001-02 involving Rs 296 crore. Also as on March 31, 2002, there were 740 cases involving Rs 7,991 crore before various DRTs across the country.
The institution has created a 'large asset management cell' to constantly monitor the health of large assets --where assistance of Rs 25 crore and above were given -- so that the 'good assets' in its books remain good.
Preference shares of Rs 20 crore were redeemed during the year. IFCI has not made a fresh issue of shares or transferred an equivalent amount to capital redemption reserve out of profit as per the provision of Section 80 of the Companies Act due to inadequacy of profit. The company is planning an issue of fresh preference shares for redemption of shares issued earlier due to the lack of profits.