IIFCL hopes to bring down NPAs to sub-2.5% level by March 2023

Representative Image

India Infrastructure Finance Company Ltd (IIFCL) expects its net non-performing assets (NPAs) ratio to drop below 2.5 per cent by the end of March 2023 with the help of aggressive recoveries and resolution cases being pursued by the state-owned entity.

"The company closed last financial year with net NPAs of 3.65 per cent and we hope to bring it down to sub-2.5 per cent by the end of the current financial year," IIFCL Managing Director P R Jaishankar told PTI in an interview.

He said the net NPA was close to double digits at 9.75 per cent at the end of March 2020, while gross NPAs stood at 19.70 per cent.

Aggressive recovery and resolution strategy pursued by IIFCL helped it bring down NPAs significantly in a short span of time, he noted.

With regard to gross NPAs, he said, the company expects it to reduce to around 8 per cent by the end of March 2023.

The percentage of 'A' and above rated assets increased from 35-40 per cent (March 2020) to about 65 per cent (March 2022).

With improvement in various parameters, Jaishankar said the institution has transformed itself from being the last mile lender to a preferred financier.

IIFCL is focusing on financing greenfield projects of national significance, he said.

Such projects include Yamuna International Airport Private Limited (Jewar airport), Navi Mumbai International Airport, Mopa Airport in Goa, SJVN Green Energy Ltd and PNC Meerut Haridwar Highways Pvt Ltd. So far, the state-owned infra financing firm has sanctioned around 650 projects with a total outlay of Rs 11.5 lakh crore and out of them, 500 are public-private partnership projects.

Jaishankar further said it has started providing financial assistance to Infrastructure Investment Trusts in FY22 and has so far sanctioned Rs 4,400 crore for such entities. IIFCL invested Rs 975 crore in project bonds, including around Rs 324 crore of bonds in renewable energy InvITs, during 2021-22.