IFCI net up 6.67 pc at Rs 378.56 cr

Gross profit stands at Rs 523.81 crore, up from the previous year’s Rs 501.87 crore. Provision for taxation in 1996-97 has come down to Rs 84 crore from Rs 100 crore in 1995-96. The corporation booked Rs 61.25 crore as depreciation in 1996-97, while in the previous year it was at Rs 46.97 crore.

IFCI’s cost of borrowings stood at Rs 1,775.66 crore in 1996-97, which is an increase of over 52 per cent over the previous year. But cost of borrowings is expected to come down as a result of which lending rates, both for the short and the long term, are expected to lower, Agrawal said.

IFCI’s gross spread stood at 5.8 per cent during 1996-97 as compared to an average spread of 4.8 per cent for 1994-95 and 1995-96 taken together.

“Spreads are expected to be under pressure in the days ahead,” Agrawal said.

The corporation’s non performing assets are down to 8.3 per cent which, in actual terms, is about Rs 1,079 crore (current outstandings are about Rs 13,000 crore). NPA break-up as to how much of the poorly performing assets belong to non-standard categories was not revealed to the press.

In 1995-96, the NPA figure stood at 9.8 per cent and in 1994-95, the figure was 9.9 per cent of total outstandings in those years.

The number of companies accounting for NPAs is about 600, Agrawal said. “Lending to these sticky accounts was done for many years in the past,” he underscored. IFCI’s current return on net worth stands at 24.27 per cent; book value stands at Rs 41.46 and current capital adequacy is at 10.07 per cent. The current earning per share is at Rs 10.73.

In 1997-98, disbursements are expected to touch Rs 7,000 crore, up by 36 per cent, while sanctions have been targeted at 39 per cent.

IFCI had applied for ECB of $300 million. Clearance for $100 million has been received. This loan will be raised at about 60-66 basis points over Libor.

Subordinated debt (long-term unsecured debt) which IFCI may also raise may come at 100-150 points over Libor. During 1996-97, IFCI raised resources of around Rs 6,066 crore which includes the “family bonds” issue. Foreign currency resources raised during 1996-97 aggregated $300 million.Disbursements during 1996-97 were 5,157 crore an increase of 13 per cent.

Sanctions during the year 1996-97 aggregated Rs 7,212 crore given to 394 projects. Set up in 1948, IFCI, the oldest of the three financial institutions will enter its 50th year beginning July 1.