State-owned India Infrastructure Finance Company Limited (IIFCL) announced its financial results for fiscal year 2020-21, reporting a 250% increase in net profit on a consolidated basis to Rs 325 crore, due increased sanctions and disbursements. The company announced that the quality of its assets has improved as it was able to reduce its net non-performing assets or NPA to 5.4% in fiscal year 2020-2021, from 9.75% in 2019-20 fiscal year.
In a statement on Tuesday, June 22, the IIFCL said it aims to reduce NPAs to around four percent in the current fiscal year 2021-2022. The company’s cash recovery in APMs increased to over Rs 625 crore in fiscal year 2020-2021, up to 92% from last year.
With the aim of strengthening its monitoring and surveillance systems, IIFCL is implementing an online project monitoring system or OPMS – a real-time project monitoring phase, a first in India. It will be implemented by integrating new-age technological solutions such as drones, artificial intelligence, etc.
The company plans to gain more market share by keeping its prices competitive and lowering the base rate to attract more business, in order to strengthen its portfolio. It also plans to establish an internal research and advisory wing, which would enable the IIFCL to provide innovative products, policy advocacy, corrective actions to government and other stakeholders.
Established in 2006, the wholly owned government organization serves 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 take-out finance, direct loans, credit enhancement and refinancing to banks and other eligible institutions for their infrastructure project loans. .