IFCI Q2 net profit down 20% at Rs 12 crore
Infrastructure term lender IFCI has reported 20 per cent decline in net profit to Rs 11.90 crore for the quarter ending September on account of rise in bad loans.
State-owned IFCI’s net profit stood at Rs 14.86 crore in the corresponding quarter previous fiscal.
However, the total income has increased to Rs 899.77 crore from Rs 809.34 crore for the same quarter of the previous fiscal,” IFCI said in statement.
The total income from operations also rose to Rs 880.44 crore during the quarter as against Rs 762.87 crore a year ago.
For the quarter under review, IFCI’s asset quality deteriorated further as Gross non-performing assets (NPAs) surged 34.8 per cent while net NPA also rose to 27.3 per cent at the end of September.
The company attributed increase in NPA to downgrading of certain standard accounts and reduction in loan portfolio.
However, the financial institution made a recovery of Rs 280 crore during quarter under the review, it said.
Capital Adequacy Ratio stood at 15.02 per cent at the end of second quarter.
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Via:: Economic Times – Stocks