Iibi Outstandings Total Rs 304.43 Cr

The Industrial Investment Bank of India (IIBI) closed the last financial year with an outstanding amount of Rs 304.43 crore locked in 313 large and medium sick units. The recovery of principal grew by 47 per cent to Rs 278.62 crore in 1997-98.

Of these, 177 units (56 per cent) were under the nursing programme with an outstanding amount of Rs 183.79 crore (60 per cent). Of the remaining 136 units, 129 (41 per cent) were found to be non-viable, and the bank had initiated legal action for recovery of dues worth Rs 112.20 crore (37 per cent). The remaining seven units were (2 per cent ) nationalised with aggregate outstandings of Rs 8.44 crore (3 per cent).

 

Till March, 1998, IIBI had received references in respect of 1297 cases from the Board for Industrial and Financial Reconstruction (BIFR). Out of 331 operating agency cases, the assignment has been transferred to others in nine cases and 18 cases have been fully revived and subsequently delisted from BIFR. Out of the 290 cases, enquiry is progressing in nine cases.

Draft rehabilitation reports have been submitted to the BIFR for the remaining 281 cases. Out of these, the revival package has been sanctioned by BIFR and AAIFR for 106 cases, and winding up order has been issued to 130 cases. IIBI is trying hard to shed its image as a nurse-maid to ailing industrial units. During the last fiscal, aggregate assistance under project finance was Rs 1717.54 crore which amounted to 83.3 per cent of total assistance.

Out of this, 50.5 per cent was for creation of fresh capacity whereas diversification/modernisation accounted for 48.8 per cent and the remaining 0.7 per cent constituted assistance to the financial services sector. In a bid to increase business, the resource mobilisation strategy adopted by the bank has been towards identifying potential bulk investors, understanding their investment needs through constant interaction and structuring innovative financial products to suit their requirements.

During 1997-98, the bank mobilised aggregate funds of Rs 778.02 crore through the issue of 13 series of privately placed unsecured bonds (Rs 428.86 crore), two tranches of certificates of deposits (Rs 71.66 crore), the government of India guaranteed SLR Bonds (Rs 105.50 crore) and redeemable preference shares (Rs 172 crore).