The net worth was depreciated on account of high non-performing assets but aggressive recovery and resolution drive has made the company profitable over the years. In the last financial year, the company made a profit of USD 19 million.
Jaishankar, who is the chairman of IIFC (UK), said the company realized USD 97 million from recovery and resolution last year and it should be around the same level during the current fiscal.
“Based on the renewed focus and efforts of the Management, the Company returned to profitability in FY20, after 2 consecutive years of losses with a focused approach on trading and recovery. Net Profit of the Company in FY22 6 has increased more than times to USD 19.09 million from USD 2.86 million in FY20,” he said.
To further enhance the company’s performance and profitability, he said, it has devised a medium-term strategy to drive its future growth and further enhance infrastructure sector financing in the country.
reserve Bank of India has approved the extension of the validity of its Line of Credit of USD 5 billion by 3 years till March 2023, of which the Company has utilized USD 2.5 billion. All the Company’s borrowings from this Line of Credit from RBI are backed by Government Guarantee.
Apart from the RBI Line of Credit, IIFC (UK) is constantly exploring new sources of funding with a view to further supplement the financial resources for infrastructure development in India, he said.
State-owned IIFCL in 2008 for the purpose of lending to Indian companies implementing infrastructure projects in India, or co-financing their external commercial borrowings (ECBs) for such projects, A London subsidiary was set up for outside capital expenditure.
So far, the company has made a cumulative gross sanctions of USD 4.414 billion and disbursements of USD 2.252 billion.
Talking about IIFCL, he said, the company aims to sanction loans of Rs 30,000 crore in FY 2013, which is the highest loan sanctioned in any year.
He said the company has transformed itself from a last mile lender to a preferred financier for infrastructure project developers in the roads, airports, ports and renewable energy sector.
“From operating loss coupled with high NPAs a few years back, the company posted a profit of Rs 514 crore in FY22. Both return on equity and return on assets improved. With the financial recovery, net worth increased from Rs 10,306 crore 12,273 crore from FY20 at present,” he said.
With regard to improving asset quality, he said the non-performing assets have come down from around 10 per cent to 3.65 per cent in FY20.
He said the percentage of ‘A’ and above assets has increased from 35-40 per cent (March 2020) to around 65 per cent (March 2022).