 "IFCI")
State-owned IFCI today posted 6% decline in net profit at Rs 133.77 crore for the quarter ended December 2014 due to rise in cost of fund.
The financial institution had a net profit of Rs 142.39 crore in the October-December quarter of the last fiscal.
"The decrease in profit during the quarter is due to rise in cost of fund leading to lower interest income and NIM," IFCI Managing Director Malay Mukherjee said.
The net interest margin declined to 2.5% compared to 2.7% in the corresponding period a year ago.
At the same time, net interest income (NII) during the third quarter slipped by 13.4% to Rs 186 crore from Rs 215 crore in the same period of the previous fiscal.
Mukherjee further said that the company is in advance stage of talks for stake sale in NSE. It may be finalised soon.
The board has already given in-principle approval for sale of 2.5% stake in NSE.
IFCI at present holds 5.44% stake in the premier bourse.
Talking about the financial numbers, Mukherjee said total income in the period under review increased to Rs 833.63 crore, from Rs 790.64 crore in the year-ago period.
The gross non-performing assets of the company declined to 11.5% at the end of December 2014, from 17.3% at the end of March 2014.
Its net NPAs also declined to 8% during the period from 11%.
He further said that the company has requested the government for Development Financial Institution (DFI) status so that it can have access to cheaper long-term funds including tax-free bonds.
