| The Kolkata-based Industrial Investment Bank of India (IIBI) has sought capital infusion of Rs 600 crore from the government to keep the loss-making financial institution going. IIBI has also suggested an alternative of liquidation at a cost of Rs 1,000 crore. |
| The IIBI management is of the opinion that its operations cannot continue without capital infusion. In any case, according to the financial institution, pure project financing institutions have become unviable in the present economic scenario. |
| The other government-owned financial institution IFCI is sailing in the same boat as IIBI. Two other financial institutions, ICICI and Industrial Development Bank of India (IDBI), have got themselves converted into banks. |
| IIBI had reported a Rs 151.99 crore loss in 2004-05 and a Rs 126.79 crore loss in 2003-04. The net non-performing assets (NPAs) of IIBI were at a high of 32.90 per cent of net assets of Rs 1,481.66 crore as on March 31, 2005, despite the Rs 1,108 crore provisions made for NPAs. IIBI has made recoveries through one-time settlements and restructuring proposals over the last three years. |
| It recovered Rs 309 crore in 2004-05, Rs 324 in 2003-04 and Rs 284 in 2002-03. It recovered Rs 31.75 crore through court proceedings and Rs 20.09 through out-of-court settlements in 2004-05. |
| The financial institution's capital adequacy continued to be negative owing to large amount of accumulated losses on account of high provisioning made for NPAs. IIBI has not resorted to fresh borrowings since October 2003. |
| The financial institution still has 187 employees on its rolls - 93 officers and 94 staff members. A total of 70 employees had opted for a voluntary retirement scheme in February 2004. |
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