The Rs 400-crore infusion of capital by the Centre notwithstanding, financial institution IFCI Ltd has approached banks for a long-term loan of over Rs 1,000 crore and is also negotiating with them for short term loans and lines of credit (LoC). It is also in talks with banks and institutions, including Unit Trust of India and weak banks, for deferring its payment liabilities.
The Delhi-headquartered FI has sold loans extended to various hotels, amounting to about Rs 40 crore, to Tourism Finance Corporation of India at a marginal premium and realised about Rs 45 crore from the transaction. Debentures issued by MSEB have also been sold to primary dealers Darashaw & Co for Rs 8 crore, sources said. Another portfolio of loans of about Rs 15 crore has been sold to UTI Bank.
Sources said a short term loan facility of Rs 100 crore has been availed from the UTI Bank in return for collaterals worth Rs 125 crore. Some securities have also been sold to LIC. The cash strapped institution is still carrying a default of about Rs 160 crore for bonds redeemed in July this year with further addition made during September.
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Sources said of the Rs 200-crore asset-liability mismatch faced by IFCI in September this year, banks and institutions have decided to rollover Rs 100 crore. Negotiations are on for some more rollovers with talks with UTI for reinvestment of bonds worth about Rs 50 crore which fell due in September.
Talks for rollover of bonds worth about Rs 35 crore with some PSU banks however failed. IFCI has hence decided to make the payment over the next couple of days. Recently, Uco Bank (Rs 50 crore) and Punjab National Bank (Rs 30 crore of Rs 38 crore), however, agreed to rollover their investments.
Sources said some more banks have given favourable responses though a final decision has not been reached at. IFCI also defaulted on provisions of the Companies Act when it redeemed preference shares worth Rs 20 crore. The institution could not transfer the redemption amount to the capital redemption reserve in the absence of any accumulated revenue and loss posted in the quarter. A fresh issue of shares could also not be done, which is a violation of the Act.
The Rs 400-crore government succour in the form of 20 years convertible debentures did help IFCI in tiding over the problem of exceeding the borrowing limit.