IFCI Q1 net up 7.5% on high interest income, fall in bad loans

State-owned term lender IFCI Ltd today reported a 7.5 per cent rise in its net profit at Rs 101.54 crore for the first quarter ended June on higher interest income and improved asset quality.
Company's net profit during the corresponding April-June quarter of 2014-15 was at Rs 94.47 crore.
"Net Interest Income (NII) for the quarter ended June was higher at Rs 233 crore against Rs 104 crore in corresponding quarter in previous year due to growth in loan book and no fresh NPAs in the current quarter," IFCI Managing Director Malay Mukherjee told reporters.
Total income during the quarter increased by 24 per cent to Rs 914 crore from Rs 737 crore in the same period a year ago.

However, company's provisioning were raised substantially during the quarter under review.
During April-June period of 2015-16, IFCI kept a share of Rs 129.88 crore as against write off/bad or doubtful asset provisioning. Such provision was at Rs 78.21 crore in the same period of 2014-15.

Mukherjee said the company has no slippages in the first quarter and it expects coming quarter to show even better results.
Gross Non-Performing Assets (NPAs) or bad loans were reduced to 9.7 per cent in the first quarter of current fiscal from 10.3 per cent a year ago. Net NPAs also cut to 6.8 per cent from 7.2 per cent in the first quarter of last fiscal.

While, the Net Interest Margin (NIM) -- the gauge of profitability -- increased to 3.3 per cent from the June quarter from 2.1 per cent in corresponding quarter of previous fiscal.
IFCI's net worth increased to Rs 6,098 crore from Rs 5,889 crore as of June 30, 2015.
Also, sanctions and disbursements for the quarter under review were at Rs 2,571 crore and Rs 2,025 crore respectively.
"This quarter was quite challenging, but compared to last year, we have done better. We are trying our best to sell our NPAs to ARCs," Mukherjee added.
On selling its stake in IFCI Factor and in IFCI Financial Services Ltd (I-FIN), he said the company is trying to revive the former.

"IFCI Factor, we are trying to revive. As far as I-FIN is concerned, we didn't get a good buyer. So we are looking for a good buyer. About IFCI Factor, I will watch up to March 2016, so we have some strategy in mind. We were looking to sell, still we are on. I am not getting attractive price, but I would not like to make any distress sell," he further said.
On fund raising plans, IFCI said the company is well capitalised and there are no such plans in the near future.
"Our capital adequacy ratio is at 18.8 per cent with tier-I capital at 12.8 per cent. So there are no plans to raise funds as of now," he added.

Shares of the company today closed at Rs 24.70 apiece on BSE, up 1.65 per cent from previous close.