IFCI seeks government nod for raising Rs 1,000 crore via tax-free bonds

IFCI has sought permission from the Finance Ministry to raise Rs 1,000 crore during this fiscal year (FY15) through tax-free bonds as part of mobilising low-cost fund.

"We have requested the government to allow us to raise Rs 1,000 crore through tax-free bonds during the current fiscal," IFCI managing director Malay Mukherjee said.

The government had permitted the state-owned company to issue tax-free, secured, redeemable, non-convertible bonds up to to Rs 430 crore in 2013-14.

The issue was fully subscribed with aggregate bids for Rs 310 crore, he said.

IFCI had posted a 13.57 per cent jump in profit at Rs 170 crore for the fourth quarter ended March, 2014 on account of lower cost of funds.

It had a net profit of Rs 150 crore in the corresponding quarter of 2012-13.

Its total income in the period under review increased to Rs 830 crore, from Rs 735.38 crore in the year-ago period.

The gross non-performing assets declined to 17.3 per cent from 22.2 per cent at the end of March, 2013. However, the net NPAs rose to 11.4 per cent from 10.2 per cent.

Net interest margin (NIM) has improved to 2.4 per cent from 2.2 per cent.

During the financial year ended March, 2013, the company's net profit rose 13 per cent to Rs 508 crore as against Rs 451 crore in same period of 2012-13.

Its total income rose to Rs 2,951.26 crore during the year from Rs 2,759.3 crore in the year-ago period.