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IIFCL aims to be zero net NPA financial institution during FY25, says MD Jaishankar

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New Delhi, May 15 (PTI) State-owned infrastructure financing firm IIFCL on Wednesday said it expects about 18 per cent loan growth and aims to reduce net non-performing assets (NPAs) to zero during current financial year.

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India Infrastructure Finance Company Ltd (IIFCL) brought down gross NPAs to 1.61 per cent in FY24 from 4.76 per cent a year ago.

Net NPAs too declined to 0.46 per cent from 1.41 per cent 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.

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He further said 88 per cent of assets are in very high quality projects as compared to 72 per cent at the end of March 2023.

Asked about capital adequacy ratio, he said, it is comfortable at 25 per cent.

"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.

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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 per cent 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 others institutions including the global investors which are already there.

IIFCL Projects Limited (IPL), 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. PTI DP DP ANU ANU

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