India Infrastructure Finance Company Ltd (IIFCL) on Tuesday reported a more than three-fold jump in its net profit to Rs 325 crore for the fiscal ended March 2021, mainly helped by recovery and reduction of bad loans.
The state-owned infrastructure finance company had earned a net profit of Rs 94 crore on a consolidated basis in the previous fiscal.
At the same time, the standalone profit of the company rose over five times to Rs 286 crore as compared to Rs 51 crore in 2019-20.
During the year (2020-21), the company posted record performance with the highest ever sanctions and disbursements at Rs 20,892 crore and Rs 9,460 crore, respectively, on a standalone basis, IIFCL managing director P R Jaishankar said while announcing annual financial numbers.
The company's asset quality witnessed improvement as net non-performing assets (NPAs) came down to 5.39 per cent from 9.75 per cent.
Going forward, he said, "We will try and bring down the net NPA to 4 percent by the end of the current fiscal".
The gross NPA of the company too declined to 13.9 percent from 19.70 per cent in the previous financial year.
With regard to cash recovery in NPAs, he said, it increased to over Rs 625 crore in 2020-21, 92 percent higher than the previous fiscal.
IIFCL also managed to significantly lower its cost of funds in FY21, resulting in better financial health, Jaishankar said.
Despite the challenges faced in view of the pandemic during the year, he said, IIFCL has managed to grow its standalone portfolio by about 9 percent.
The provision coverage ratio increased from 50.51 percent in 2019-20 to 61.24 per cent at the end of March 2021.
On the outlook for business, Jaishankar said IIFCL plans to aggressively capture an increased market share by keeping its pricing competitive and lowering down the base rate to attract more business and further strengthen its portfolio.
"IIFCL is now in the process of bringing in a market-oriented dynamism in all its activities, with an improved credit policy, segmented risk-based pricing, enhanced efforts for recovery, an active treasury management and digitalisation of monitoring of projects for ensuring progress linked disbursements in projects," he noted.
Asked about a merger with proposed Development Finance Institution called the National Bank for Financing Infrastructure and Development (NaBFID), he said, there are no such plans, rather the company has its own growth agenda.
Parliament in March cleared the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 to support the development of long-term non-recourse infrastructure financing in India, including the development of the bonds and derivatives markets necessary for infrastructure financing.