Santosh Nayar takes charge as chief executive at IFCI

Will succeed Anurag Jain, IAS, govt director on board who was holding additional charge of CEO & MD

Santosh Nayar B Nayar is a new chief executive and managing director at IFCI Ltd, a government-owned non-banking finance company.
 

He succeeds Anurag Jain, IAS, and government director on board who was holding additional charge of CEO   & MD. His appointment comes at a time when the credit profile of Delhi-based finance outfit has deteriorated due to pressure on interest margin, dent in profits and rise in bad loans.
 

Nayar, moves from State Bank of India where he was group executive and deputy managing looking after corporate banking group. 
 

Meanwhile, IFCI informed Bombay Stock Exchange that Ashok Kumar Jha has been inducted as Additional Director on the board from July 15, 2013.
 

IFCI posted 31.6% drop in net profit cent at Rs 149.94 crore for fourth quarter ended March 2013 as against Rs 219.25 crore in Q4 of 2011-12 on higher provision for bad loans.

Its total income from operations, on standalone basis, in Q4 also declined to Rs 710.85 crore from Rs 787.90 crore in January-March 2012.  The drop in income was mainly due to reversal and non-recognition of income on assets downgraded during the quarter.

Its write-offs and provisions for bad and doubtful assets loans in Q4 of Fy13 stood at Rs 52.59 crore as against reversal in provisions of Rs 7.55 crore in Q4 of 2011-12.

The net profit for the financial year ended March 2013 dipped to Rs 450.87 crore from Rs 663.62 crore in the year ended March 2012. It reported lower income of Rs 2,705.85 crore in FY13 as against Rs 2,800.97 crore in Fy12.  The net interest margin for FY13 declined to 2.16% from 2.46% for Fy12.

The Gross non-performing assets (GNPAs) stood at Rs 3,661 crore in March 2013, up from Rs 2,608 crore at end of March 2012. The net NPAs of Rs 1,454 crore in March 2013 (10.2% of net advances) compared to Rs 327 crore (1.9%) at end of March 2012.