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Journalism of Courage
Industrial Finance Corporation of India Ltd (IFCI) today reported decline in net profits by 69 per cent to Rs 68.34 crore in the first half of current fiscal compared to Rs 217.59 crore in corresponding period last year.
The decline in profits is despite increased income by 14 per cent to Rs 1,465.52 crore from Rs 1,280.24 crore in the first half of 1997-98. IFCI earned net profits of Rs 4.12 crore in second quarter of 1998-98 while its bottomline in the first quarter was Rs 64.22 crore.
Addressing a press conference here today, chairman and managing director P V Narasimham said drop in profits was due to provision of Rs 150 crore for bad and doubtful investments compared to Rs 20.05 crore in previous half year and sluggish industrial climate.
The institution had made a provision of Rs 161 crore for the entire 1997-98 for bad and doubtful investments, he said. Profits have also decreased due to a decline in foreign exchange loans and guarantee business, Narasimham said.
Sanctions by IFCI in first halfof 1998-99 declined by five per cent to Rs 4,439 crore from Rs 4,680 crore while disbursements were up to Rs 2,248 crore compared to Rs 2,014 crore in the corresponding period last year, a growth of 12 per cent.
