IFCI net profit rises four-fold

IFCI, a term-lending institution which is now classified as a non-banking finance company, today reported a four-fold rise in its net profit for the second quarter of 2007-08 compared with a year earlier, on account of income received from the sale of assets.

IFCI's net profit in the second quarter of 2007-08 was Rs 497.29 crore, up from Rs 115.83 crore a year earlier.

The company's total income grew 83 per cent to Rs 595.6 crore in the September quarter from Rs 325.4 crore a year earlier. The income from sale of assets was Rs 591.6 crore.

The company did not report any operating income for the quarter. The total expenditure stood at Rs 152.18 crore at the end of September.

IFCI has been categorised by the Reserve Bank of India (RBI) as a systemically important non-deposit taking non-banking finance company (NBFC-ND-SI) since the second quarter of 2007-08.

NBFCs with minimum assets of Rs 100 crore are considered systemically important. IFCI, which was making losses since 2000, posted a net profit of Rs 874 crore in 2006-07.