IFCI Q3 net profit surges 87 pc to Rs 142 cr

State-owned IFCI Ltd today posted 86.59 per cent jump in net profit at Rs 142 crore for the third quarter ended December 2013 on the back of cost rationalisation and cheaper fund.
The financial institution had a net profit of Rs 76 crore in the October-December quarter of 2012-13.
The rise in profit is on account of a decline in cost of funds as banks offered loans following government becoming majority owner. Besides, there was rationalisation in employee expenses, IFCI Managing Director Malay Mukherjee said.
In December, 2012, the financial institution became state-owned entity with government getting 55.53 per cent stake by conversion of optionally convertible bonds.

Its total income in the period under review increased to Rs 790.64 crore, from Rs 647.58 crore in the year-ago period.
The gross non-performing assets of the bank declined to 16.2 per cent from 19.5 per cent.

Its net NPAs also declined to 9.5 per cent from 11.3 per cent.
Net interest income (NII) during the third quarter increased by 67.21 per cent to Rs 177.34 crore from Rs 110.13 crore in the same period of the previous fiscal.
Net interest margin (NIM) and interest spread have improved to 2.7 per cent from 2.2 per cent.
He further said that the company is looking at benefits of government owned company so that it can have access to cheaper long-term funds including tax-free bonds.

During the three quarters (April-December) of 2013-14, the company's net profit rose by 10 per cent to Rs 338 crore, as against Rs 301 crore in same period of 2012-13.
Its total income rose to Rs 2,122 crore for the nine months, from Rs 2,024 crore in the year-ago period.