IFCI Q2 net profit rises 24% to Rs 173 cr

State-owned term lender IFCI today reported a 24 per cent rise in its net profit at Rs 173.79 crore for the second quarter ended September this year on account of significant reduction in provisions.
The company had posted net profit of Rs 140.31 crore in the July-September quarter of 2013-14.
"The increase in profit is primarily because of 78 per cent reduction in provisions. The provisions for bad or doubtful assets were cut to Rs 117.59 crore during the September quarter 2014-15, from Rs 208.39 crore a year ago," IFCI CEO and Managing Director Malay Mukherjee said.
As of September, the company's portfolio quality improved, with gross non-performing assets (NPAs) coming down to 12.4 per cent of gross advances as against 20.9 per cent in the same quarter of the previous fiscal.

Its net non-performing assets also declined to 9 per cent from 11.3 per cent in the review period.
Asked about making the company a Development Finance Institution, he said, "Efforts are under way to get the tag of DFI for IFCI. We are in constant touch with government at the same time we are talking to regulators for the same."

Total income of the company increased to Rs 874.33 crore as against Rs 756.95 crore in the same period a year ago.
It's net income from operations rose by 15.5 per cent to Rs 848.36 crore during Q2-FY15 while income from other operations remained nearly flat at Rs 7.09 crore, from Rs 7.34 crore in the year ago period.

Shares of IFCI closed at Rs 39.10 per scrip on the BSE today, up 0.39 per cent from the previous close.