IFCI records Q1 loss at Rs 3.4 billion, expenses surge to Rs 11.91 billion

Infrastructure sector lender IFCI Saturday reported a standalone net loss of Rs 3.40 billion for the April-June quarter of current financial year.

The company had a net profit of Rs 2.77 billion in the same quarter of previous financial year.

Total income of the company declined to Rs 6.73 billion in the first quarter of this financial year, from Rs 9.07 billion in the same period last year, IFCI said in a filing to the BSE.

Total expenses of IFCI in the June quarter rose to Rs 11.91 billion, which include Rs 6.64 billion for impairment losses on financial assets.

IFCI further said the company is one of the lenders in various cases, which have been referred to the National Company Law Tribunal (NCLT).

"In terms of clarification received by the company from RBI ... the company was classifying its loan accounts, including NCLT cases and was calculating provisions required...," it said.

For the quarter ended June 30, 2018, the company has classified these accounts as per the RBI Directions, but has made provisions against bad and doubtful assets based on the calculated Expected Credit Loss (ECL), it added.