IFCI logs operational income of `480 cr in Q1

New Delhi: IFCI Limited, a government owned systemically important NBFC, on standalone basis, has reported total comprehensive income of Rs 31 crore for the quarter ended June 2019, higher than Rs 25 crore for the quarter ended March 2019. It also reported higher operational income of Rs 480 crore during this quarter than Rs 454 crore in the previous quarter, i.e. Q4 of FY19.

The company also brought down the net loss from Rs 38 crore in the March 2019 quarter to Rs 10 crore in the June 2019 quarter. The company calculates the expected credit loss (ECL) on loan assets on portfolio basis after analysis of its past experience in recovery from stressed assets.

During the June 2019 quarter, the company wrote off bad loans amounting to Rs 979 crore and the portfolio loss given default (LGD) was lower compared to March 2019, resulting in net reversal of ECL by Rs 427 crore. The cumulative carried ECL as on June 30, 2019 was higher than that required as per erstwhile RBI norms and the PCR stood at 49.44 per cent at the end of quarter.

There was also improvement in Net Interest Income to Rs 81 crore in Q1FY20 from Rs 26 crore in Q4FY19.

On consolidated financials also, IFCI reported higher operational income at Rs 637 crore than Rs 617 crore in March 2019 quarter and reduced its consolidated net loss to Rs 7 crore in June 2019 quarter from Rs 73 crore for March 2019 quarter.

While, its Capital Adequacy Ratio increased to 13.35 per cent with Tier I Capital at 8.90 per cent as on June 30, 2019 from 7.97 per cent and 5.31 per cent respectively as at March 31, 2019, the Debt Equity Ratio further improved to 3.57 from 3.81 during the quarter and the Net worth increased from Rs 4,225 crore as on March 31, 2019 to Rs 4,256 crore by June 2019 end.

However, Gross Stage-3 assets and Net Stage-3 assets as at June 30, 2019 were higher at 61.34 per cent and 45.71 per cent respectively vis-à-vis 60.70 per cent and 38.93 per cent as on March 31, 2019 because of reduction in LGD and loan portfolio.

In the current banking and financial sector scenario, stressed by the bad loans in the infrastructure and allied sectors, IFCI has also been burdened by virtue of being part of the consortium financing.However, its efforts for recovery from the stressed assets & NPAs, divestment from strategic and project investments and improvement in quality of new sanctions since the last couple of years have already started yielding results.