IIFCL Plans To Achieve Zero Net NPAs By FY25: MD Jaishankar
IIFCL aims to achieve zero net NPAs by FY25, expects 18% loan growth and plans to raise capital through share sale.
State-owned infrastructure financing firm IIFCL on Wednesday said it expects about 18% loan growth and aims to reduce net non-performing assets to zero during current financial year.
India Infrastructure Finance Company Ltd brought down gross NPAs to 1.61% in FY24 from 4.76% a year ago.
Net NPAs too declined to 0.46 per cent from 1.41% in the year-ago period, IIFCL Managing Director PR Jaishankar said.
During the current year, he said, net NPA would be either zero or nearly zero and the company has plans to achieve that target.
He further said 88% of assets are in very high-quality projects as compared to 72% at the end of March 2023.
Asked about capital adequacy ratio, he said, it is comfortable at 25%.
"Next level of growth definitely requires a lot of augmentation of various resources, and different options in the capital structures are already being examined. We have some plans for future as well and when we reach that stage we will exercise suitable options," he said.
Asked about capital raising plan through share sale, he said, "this financial year we will lay out plans and see how best they are implemented."
Currently, IIFCL is 100% owned by Government of India.
Talking about opening office in GIFT City, he said, the idea is to start some advisory and consultancy services and build relations with various other institutions including the global investors which are already there.
IIFCL Projects Ltd, IIFCL’s wholly owned subsidiary has opened an office in GIFT City in order to attract international investors in infrastructure sector.
He further said GIFT City will help them raise cheaper capital from overseas market to fund infrastructure projects in India.
"Since we already have a subsidiary company in London, we would like to look at the future resource raising of IIFCL Group in the form of a triad between London, GIFT City and Delhi and the objectives of this triad would be to ensure the best possible arrangement in terms of lower cost of funds and longer-term capital for infrastructure development in India," he said.
