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India Infrastructure Finance Co Ltd (IIFCL), on June 22, reported a nearly 250 percent jump in its consolidated net profit for 2020-21 (April-March) to Rs 325 crore as the company's sanctions and disbursements soared.
The non-banking financial company said it has brought down its net non-performing assets to 5.4 percent in 2020-21 from around 9.75 percent in 2019-20 and said it aims to reduce NPAs to around 4 percent in 2021-22.
The state-owned company's management said on June 22 that it was looking to focus on long-term financing of infrastructure projects in the roads and railways sector to reduce its NPAs.
The company also launched a real-time infrastructure project monitoring system, which it expects will help project financers monitor the development of projects across the country on a real-time basis and will help in reducing delays in the projects. It is also working to set up an in-house research and advisory wing.
IIFCL's management also said that it was not looking to merge itself with the newly set up National Bank for Financing Infrastructure and Development.
The Central government in the Budget for 2021-22 sanctioned the National Bank for Financing Infrastructure and Development and expects the new entity to be the principal Development Financial Institution for infrastructure financing in the country.
IIFCL's management added that they were confident that with the rollout of the National Infrastructure Pipeline there would be a number of infrastructure projects looking for funding and this would help the company grow moving forward.
IIFCL's cumulative sanctions as of March 31 stood at Rs 1.6 lakh crores having risen Rs 20,892 crore in 2020-21, 124 percent higher when compared to 2019-20. Similarly, the company's cumulative disbursements as of March 31 stood at Rs 81,376 crore having risen Rs 9,460 crores in 2020-21, 57 percent higher when compared to 2019-20.
The NBFC's cash recovery in NPAs also rose to Rs 625 crore in 2020-21, 92 percent higher than the previous fiscal.
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