IIFCL Reports Net Profit Of Rs 325 Crore In 2020-21, Asset Quality Improves

IIFCL FY21 Results: State-owned India Infrastructure Finance Company Limited (IIFCL) reported a 250 per cent rise in net profit on a consolidated basis to Rs 325 crore

IIFCL Reports Net Profit Of Rs 325 Crore In 2020-21, Asset Quality Improves

IIFCL said it aims to reduce the NPAs to around four percent in 2021-22

State-owned India Infrastructure Finance Company Limited (IIFCL) announced its financial results for fiscal 2020-21, reporting a 250 per cent rise in net profit on a consolidated basis to Rs 325 crore, driven by rising sanctions and disbursements. The company announced that its asset quality improved as it was able to bring down its net non-performing assets or NPAs to 5.4 percent in the financial year 2020-21, from 9.75 percent in fiscal 2019-20.

In a statement issued on Tuesday, June 22, IIFCL said it aims to reduce the NPAs to around four percent in the current financial year 2021-22. The company's cash recovery in NPAs increased to more than Rs 625 crore in the fiscal year 2020-2021 - as much as 92 per cent higher than last year.

In a bid to strengthen its monitoring and surveillance systems, IIFCL is in the process of setting up an online project monitoring system or OPMS - a real-time project monitoring phase, a first-of-its-kind in India. It will be implemented by integrating new-age technological solutions such as drones, artificial intelligence, etc.

The company plans to capture an increased market share by keeping its pricing competitive and lowering down the base rate to attract more business, in order to strengthen its portfolio. It also plans to establish an in-house research and advisory wing, which would allow IIFCL to provide innovative products, policy advocacy, remedial action to the government and other stakeholders.

Established in 2006, the wholly-owned government organization caters to the long-term financing needs of the infrastructure sector in the country. It is the only financial institution that assists all infrastructure sub-sectors through takeout finance, direct lending, credit enhancement and refinances to banks and other eligible institutions for their loans to infra projects.

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