India Infrastructure Finance Company Limited (IIFCL), a state-owned entity, is setting ambitious targets for financial year 2024-25, aiming for zero net non-performing assets (NPAs). Managing Director PR Jaishankar announced this goal on Wednesday, highlighting the company’s commitment to improving asset quality.
By March 31, 2024, IIFCL had already made significant progress in this regard, with a remarkable decline in both gross and net NPAs compared to previous years. The gross NPA ratio reduced to 1.61%, down from 4.76% in the previous year and a substantial 19.70% in March 2020. Similarly, the net NPA ratio decreased to 0.46%, down from 1.41% in the previous year and a much higher 9.75% in March 2020.
Discussing the draft Reserve Bank of India (RBI) infrastructure financing guidelines, Jaishankar mentioned that IIFCL had submitted its suggestions to the RBI. He acknowledged the potential impact of the guidelines on the cost of funds but emphasized that it is still in the draft stage and subject to revision.
The company also reported its highest-ever profit, recovery, sanction, and disbursement, marking a significant turnaround performance over the past three years. IIFCL recorded a 44% increase in standalone net profit to Rs 1,552 crore for the fiscal year ended March 2024, attributed to increased lending activities and a decrease in bad loans. This figure represents a substantial improvement from the previous fiscal year, where the net profit stood at Rs 1,076 crore.
IIFCL has been actively involved in financing infrastructure projects, having funded a total of 760 projects with a combined project outlay of Rs 13.8 trillion. In FY 2023-24, the company saw a year-on-year growth of 21% in its standalone portfolio, reaching Rs 51,017 crore compared to Rs 42,271 crore in the previous fiscal year.
