Go Ad-Free
    My Alerts
    Moneycontrol
    Moneycontrol PRO
    HomeNewsBusinessCompaniesIDFC says NPAs could spike to around 1.5%

    IDFC says NPAs could spike to around 1.5%

    NBFC major IDFC said that it may see a surge in its non performing assets (NPAs) around 1.5 percnt in the nextg 12-18 months due to the current slowdown in the infrastructure sector.

    July 30, 2013 / 16:41 IST

    Non-banking finance company IDFC today said it may see a spurt in its non-performing assets (NPAs) to 1-1.5 percent in the next 12-18 months due to the current slowdown in infrastructure sector.
     
    "We may see our NPL level rising to 1-1.5 percent in the next 12-18 months given the bad environment," Managing Director and Chief Executive Vikram Limaye told reporters here.


    Also read: Keeping check on loan book, fresh NPLs: Allahabad Bank


    He, however, added the company has kept building provisions to absorb the impact of any rise in bad assets. IDFC had reported gross NPA of around 0.32 percent in the first quarter of the current financial year, which was marginally up over the corresponding period of last fiscal. On the cost of funds for the company, Limaye said it would depend on the overall liquidity environment.


    "Bond yields are currently at an elevated level. Also, short-term money market instruments are at a higher level due to the recent liquidity tightening measures by the RBI. So, the cost of funds will depend on the overall liquidity environment," Limaye said.


    He said total borrowing of the NBFC would depend on the loan demand.


    In the first quarter, the company had witnessed its gross approvals declining 78 percent and its gross disbursements coming down 28 percent over the corresponding period previous fiscal.

    The infra financing company is expecting its overall business growth to be around 10 percent this fiscal. Limaye also said the company is not facing any asset-liability mismatches now.

    first published: Jul 30, 2013 04:41 pm

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347
    CloseOutskill Genai