IFCI posts net loss of Rs 45.17 crore
 
The company registered a net profit of Rs 154.33 crore during the October-December period of previous fiscal    
 

IFCI registered standalone net loss of Rs 45.17 crore for third quarter ended December 31, 2016 (Q3FY'17) on higher provisions for bad loans and decline in income.

The company registered net profit of Rs 154.33 crore in the October-December period of previous fiscal. The total income decreased to Rs 635.55 crore for the quarter ended December 2016 from Rs 947.15 crore for the same quarter year ago.

The total income decreased to Rs 635.55 crore for the quarter ended December 2016 from Rs 947.15 crore for the same quarter year ago.

There were write-offs and provisions for non-performing assets (NPAs) to the tune of Rs 139.87 crore in the quarter, sharp jump from Rs 48.50 crore a year ago. Net income from operations came down to Rs 569.44 crore from Rs 891.17 crore in year-ago period.

The company's operational income declined by 36 per cent in the Q3of current year to Rs.577crore from Rs.897crore in Q3 of previous year and also lower by 24 per cent at Rs.763crore in the immediate preceding quarter ended September .30, 2016. This was due to reversal of income in respect of fresh slippages, pre-payments, low credit off take and reversal of unrealised interest in respect of SDR/S4A cases, during the quarter.

Gross non-performing assets (NPAs) and net NPAs as on December 31, 2016 have increased to 25.8 per cent and 21.4 per cent respectivelyvis-a-vis13.1 per cent and 9.5 per cent as in March 2016 because of downgrading of certain standard accounts in current nine months period and reduction in the loan portfolio due to prepayments and low credit offtake.

The operational income for current nine months was also lower by 24% at Rs.2,162crore as compared to Rs.2,841crore in corresponding period in previous year due to above reasons.

The capital adequacy ratio was, however, comfortable at 17.65 per cent at the end of December quarter against RBI requirement of 15 per cent with Tier I Capital of12.17 per cent .

The company unveiled stratey to arrest rising trend in NAPs by adopting various measures like thrust on quality, borrowers, undertaking review of long-term lendig rates and focus on core business.