IFCI Q1 profit up 71% to Rs 95 cr; to exit from IFCI Financial

State-owned term lender IFCI today reported 71 per cent jump in net profit at Rs 95 crore for the first quarter ended June due to gain from treasury operations.
The company had posted a net profit of Rs 55 crore for the corresponding quarter of 2013-14.
After announcing results IFCI Managing Director Malay Mukherjee said the company intends to disinvest its entire stake in IFCI Financial Services Ltd (I-FIN) during the current fiscal.
IFCI holds about 94 per cent stake in I-FIN. It has appointed a consultant for selling its stake.
I-FIN is primarily involved in stock broking, investment banking, mutual fund distribution, insurance products distribution etc.

Total income of the company rose to Rs 736.55 crore from Rs 561.53 crore a year ago.

"Profit has surged mainly due to gain from treasury operations and increase in net interest income," he said.
Net interest income of the company improved by 35 per cent to Rs 104 crore as compared to Rs 77 crore in the same period a year ago.
At the end of June 2014, the net interest margin improved to 2.1 per cent from 1.9 per cent in the same period a year ago.
As of June, the company's portfolio quality improved, with gross non-performing assets (NPAs) rising to 15.6 per cent of gross advances as against 17.3 per cent in the same quarter of the previous fiscal.

Its net non-performing assets also rose to 10.8 per cent from 11.4 per cent in the review period.
Gross loans and advances increased to Rs 20,987 crore from Rs 19,990 crore at the end of March 2014.
The company is weighing option of selling non-performing assets to asset reconstruction company.
"We have identified 50 such accounts and would like to sell to ARC," he said.