 "IIFCL targeting for zero net NPAs for FY25, says MD PR Jaishankar")
State-owned India Infrastructure Finance Company Limited (IIFCL) Managing Director PR Jaishankar on Wednesday said that they are targeting zero net non-performing assets for the financial year 2024-25.
As of March 31, 2024, IIFCL has been able to improve its asset quality with a significant decline in gross non-performing asset (NPA) ratio to 1.61 per cent down from 4.76 per cent in the previous year and 19.70 per cent as on March 2020, and net NPA ratio to 0.46 per cent which is down from 1.41 per cent in the previous year, which stood at 9.75 per cent as on March 2020.
On the issue of draft Reserve Bank of India (RBI) infrastructure financing guidelines, Jaishankar said that they have sent the suggestions to the RBI. “It's only a draft; we have submitted our comments to the RBI. Definitely provisioning is one aspect; the way it (draft guideline) is structured, it reflects there will be an impact on the cost of funds if it gets implemented. But I'm sure it's only the draft,” he said.
The company recorded the highest-ever profit, recovery, sanction, and disbursement furthering turnaround performance that began three years ago, IIFCL Managing Director PR Jaishankar said while announcing annual financial numbers in New Delhi.
IIFCL reported a 44 per cent jump in standalone net profit to Rs 1,552 crore for the fiscal ended March 2024 aided by an increase in lending and moderation in bad loans. The state-owned infrastructure finance company had earned a net profit of Rs 1,076 crore in the previous fiscal.
So far, IIFCL has funded 760 projects with a total project outlay of Rs 13.8 trillion.
More From This Section
The company recorded year-on-year growth of 21 per cent in its standalone portfolio to Rs 51,017 crore in FY 2023-24 from Rs 42,271 crore in FY 2022-23.
The Provision Coverage Ratio (PCR) in the last fiscal increased to 71.51 per cent from 70.48 per cent, Jaishankar said.