Saddled with bad loans, the country’s oldest financial institution IFCI expects to recover about Rs 2,000 crore from the resolution of non-performing assets (NPAs) during the current fiscal.
The state-owned term lender has also lined up some of its non-core fixed assets including commercial real estate for sale in 2018-19 provided they fetch good value, IFCI Managing Director E S Rao told PTI.
The net NPAs or bad loans of IFCI were at Rs 5,100 crore at the end of last financial year, March 31, 2018, he said.
“learning curve is there in NClT activity...We are expecting good recovery would start happening this year. Against the target of Rs 1,050 crore, we achieved Rs 960 crore last fiscal. That effort would continue even this year. We are expecting recovery of Rs 1,800-2,000 crore for this financial year,” he said.
Enough of provision has been done, so the recovery would add to the bottomline of the company and also bring down the NPA level.
At the same time, IFCI is looking at monetising some of its investment in power and telecom sector, Rao said without naming the companies.
He also said that Bhushan Steel resolution has brought to the firm Rs 329 crore and there is more in the pipeline. Of the 12 large NPA accounts with over Rs 5,000 crore, identified as bad loans by Internal Advisory Committee of RBI for undertaking resolution under Insolvency and Bankruptcy Code (IBC) last year, IFCI has exposure in 6 such cases, he said.