Ifcis Share In Disbursements Dips To 4.1%

IFCI's share in disbursements among the major financial institutions has been drastically reduced from 12.5 per cent (Rs 4,818.3 crore) in 1998-99 to 4.1 per cent (Rs 2,120.9 crore) in 2000-01.

During the same period, the Industrial Development Bank of India's (IDBI) share also dipped to 33.9 per cent (Rs 17,498.3 crore) from 37.6 per cent (Rs 14,470.1 crore).

In contrast, ICICI's share in disbursements has shown a jump during the period to 62 per cent (Rs 31,964.6 crore) from 49.9 per cent (Rs 19,225.1 crore) in 1998-99.

The resources raised by ICICI is about twice that of IDBI in the last fiscal. ICICI raised Rs 10,677 crore, which is 56.6 per cent of the total resources raised, compared with IDBI's Rs 5,481 crore and IFCI's Rs 2,709 crore.

Net profit of some of the select financial institutions, including ICICI, IDBI, IFCI, TFCI, Exim Bank, NHB and IIBI, declined 35.05 per cent to Rs 2,119.06 crore in fiscal 2001 compared with Rs 3,262.68 crore in fiscal 2000. Income of the institutions has increased six per cent, while expenditure was up by more than 12 per cent.

The ratio of net non-performing assets to net loans was below 10 per cent for ICICI, Sidbi and Exim Bank, while it was between 14 and 23 per cent in IDBI, IIBI and TFCI.

The RBI has also said financial institutions had shown a movement away from borrowings and towards debt in form of bonds, debentures and deposits.

Major institutions are also showing a trend towards private placements of bonds and debentures than public issue. In the case of ICICI, of the total resources raised, 27.2 per cent was from public issues and 72.8 per cent from private placement compared with 37.6 per cent and 62.4 per cent, respectively, in 1999-2000. In the case of IDBI, public issues had reduced to 21.2 per cent in 2000-01 compared with 27 per cent in the previous year, while private placements increased to 78.8 per cent from 73 per cent earlier.