Ifci Disbursals Up 13 Per Cent In Last Fiscal

The disbursement of Industrial Finance Corporation of India (IFCI) has increased by 13.1 per cent to Rs 5,159 crore in 1996-97. The average annual growth of its disbursements between 1994 and 1997 fiscal has been 40.9 per cent as compared to 7.2 per cent in the preceding three years.

The financial institutions loan sanctions in 1996-97 was Rs 7,212 crore. The annual growth in sanctions between 1994-95 and 1996-97 had been 34.8 per cent compared with a 16.3 per cent growth three years before that, an official press release said.

In 1996-97, it sanctioned project finance worth Rs 6,414 crore, accounting for 88.9 per cent of its total portfolio. The remaining Rs 798 crore was extended in the form of financial services. It has recorded a sharp increase in its market share among financial institutions, in terms of both disbursements and sanctions in 1996-97.

The share of disbursements increased from 15.2 per cent in 1993-94 to 20.5 per cent in 1996-97 while sanctions have grown from 14.8 per cent to 20.2 per cent, correspondingly. The financial institutions thrust areas of lending - power, iron and steel, textiles, synthetic resins and plastics, paper and paper products, fertilisers, synthetic fibres, electrical machinery, basic chemicals and machinery - accounted for 72 per cent of its loan sanctions last year.

In 1996-97, IFCI raised rupee resou- rces amounting to Rs 6,083 crore, which included the successful public issue of `family bonds. It raised foreign currency aggregating $300 million during the year. It has decided to reduce its prime lending rate from 16 to 15 per cent.

, which will bring down the interest rate band by 1 per cent to 15-18.5 per cent.