IFCI to expand loan book by Rs 60 billion next year with focus on financing

The country's oldest public sector financial institution IFCI in its pursuit to grow its net interest income plans, expects to expand its loan book by about Rs 60 billion in the next financial year beginning April.

The expansion of asset book will also include take out finance where IFCI will pick up stake from other lenders in a good operational infrastructure projects.

"On an average, we will be targeting loan sanction of Rs 5 billion per month beginning next financial year. This would include take out finance also," IFCI MD and CEO E S Rao told PTI.

When every bank is conservative towards the lending, IFCI would do judicious lending as this company has a long history of nation building through the development of infrastructure over last seven decades, he said.

"So going ahead, the focus will be to maintain a positive net interest income, report operational profits and maintain adequate capital adequacy," he said.

During the current financial year, the company had sanctioned loans of Rs 52.7 billion and disbursements were at Rs 36.18 billion as of December 31, 2017.

IFCI is derisking its balance sheet by being selective in its financing of industry, agriculture and infrastructure and financing projects that have good credit ratings.

"We are refinancing infrastructure projects that are up and running to minimise risks," Rao said.

Asked about capital infusion, he said, the government will soon pump in Rs 1 billion through preference shares as the Extraordinary General Meeting of the company has just cleared the proposal.

Following the infusion, the government holding in the institution will increase from existing 55 per cent to about 56 per cent.

For the third quarter ended December 2017, IFCI reported standalone net loss of Rs 1.76 billlion as against net loss of Rs 451 million in the same period last financial year.

However, the total income rose slightly to Rs 6.5 billion during the quarter under review, as against Rs 6.35 billion in the year-ago period.