ICRA downgrades ratings for IFCI's bonds on sharp dip in asset quality

State-owned lender may need additional capital infusion

Ratings agency ICRA has cut the rating for Delhi-based state-owned lender IFCI’s bonds and long-term borrowing from “A+” to “A” on sharp deterioration in asset quality.

Its stock was trading flat at 29 per share on the BSE.

The rating downgrade is driven by the sharp deterioration in asset quality with gross non-performing assets (NPAs) of 25.8 per cent and net NPAs at 21.4 per cent as on December 31, 2016. The continued stress on the entity’s loan book has very high proportion of loan book in the 120-150 days past due (dpd) bucket.

In line with the Reserve Bank