IFCI net surges 87%; to seek FinMin nod on R5,000 crore tax-free bondshttps://indianexpress.com/article/business/business-others/ifci-net-surges-87-to-seek-finmin-nod-on-r5000-crore-tax-free-bonds/

IFCI net surges 87%; to seek FinMin nod on R5,000 crore tax-free bonds

In December 2012, the financial institution became state-owned entity with government getting 55.53 per cent stake by conversion of optionally convertible bonds.

Keen to reduce the cost of its funds, state-owned IFCI Ltd on Monday said it has requested the finance ministry for permission to raise Rs 5,000 crore through tax-free bonds as well as benefits of government-owned company on the lines of the developmental finance institutions (DFIs).

“This will help us get cheaper funds as it is necessary that an institution like IFCI is there for long term funding,” said Malay Mukherjee, managing director and CEO, IFCI.

In December 2012, the financial institution became state-owned entity with government getting 55.53 per cent stake by conversion of optionally convertible bonds. The institution has also applied for a banking license and said a DFI-type status would help it raise long term funds, which may be difficult for banks.

IFCI, meanwhile, reported 87 per cent increase in its net profit at Rs 142 crore for the December quarter, against Rs 76 crore a year ago. Total income grew by 24 per cent to Rs 803 crore in Q3FY14 as against Rs 647 crore a year ago. Gross non-performing asset ratio also reduced to 16.2 per cent in December 2013 from 19.5 per cent at September 2013. Net NPA ratio reduced to 9.5 per cent from 11.3 per cent in the previous quarter.

Stir paralyses banking operations

ENS Economic Bureau
Mumbai, February 10

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With 8.5 lakh employees of public and some private sector banks starting a two-day strike to press for a revision in wages and operations, bank branches across the country were hit on Monday.

However, private banks like ICICI Bank, HDFC Bank and Axis Bank were functioning normally. “About 10 crore cheques were held up across the country due to the strike. This is valued at around Rs 7,40,000 crore. Cash withdrawals, deposits, transaction of import and export bills and money market were affected,” CH Venkatachalam, general secretary of the All-India bank Employees Association told The Indian Express.

He said employees of 26 PSU banks, 11 private (old generation) banks, 6-7 foreign and 42 regional rural banks participated in the strike. These account for 90-92 per cent of the total banking operations in India.