India Infrastructure Finance Company Ltd. (IIFCL) and Indian Railway Finance Corporation Ltd. (IRFC), the finance arm of Indian Railways, have signed a memorandum of understanding to increase their cooperation in financing railway infrastructure projects.
In a post-trade announcement on Tuesday, the IRFC announced that it had signed an agreement with IIFCL to increase collaboration in the financing of rail infrastructure projects that have upstream and downstream links with the railroad sector. Indian iron. By combining their skills and knowledge, the two financial institutions will be able to build their capacity and study these financial prospects.
In response to the news, IRFC shares rose 0.7% to 21.5 on the Bombay Stock Exchange, up from their previous closing price of 21.35. (BSE). The 30-stock Sensex, on the other hand, gained 141 points to 57,288 levels and 18 of its members were trading in the green.
In an exchange filing, IRFC said the deal will allow it and IIFCL to “capitalize on each other’s skills in infrastructure project finance, project due diligence, syndication , credit enhancement, refinancing, etc.”
Under the agreement, IRFC and IIFCL intend to complement each other so that they can tap into the funding prospects of financially strong infrastructure projects.
India Infrastructure Finance Company Limited (IIFCL), a public sector organization under the Ministry of Finance, was established in 2006 to meet the long-term financing needs of the infrastructure sector in India. It is an infrastructure finance company registered with the Reserve Bank of India as NBFC-ND-IFC, or Non-Banking Financial Company-Non Deposit Company (RBI).
The alliance between IRFC and IIFCL is a step towards realizing Prime Minister Narendra Modi’s goal of creating a $5 trillion Indian economy by 2025, said Amitabh Banerjee, CMD, IRFC , in a speech delivered on this occasion. By facilitating this state-of-the-art infrastructure, this symbiotic partnership between two leading financial institutions will play a crucial role in driving the growth of the national rail system and improving the customer experience while reducing logistics costs.
IIFCL has been at the forefront of infrastructure financing in India, and this MoU will allow both parties to enhance their cooperation in co-financing and consortium financing of infrastructure projects, including those in the railway sector , according to PR Jaishankar, MD of IIFCL, who highlighted the importance of the infrastructure sector for the development of the Indian economy.
IRFC reported net profit of $1.662 billion for the April-June 2022 quarter (Q1 FY23), compared to $1.502 billion in the same quarter last year, representing a gain of one year-on-year (YoY) of 10.6%. From 4,582 crore in the same period last year to 5,627 crore this year, the overall revenue from operations increased by 22.8%. Net interest income increased 11.9% year-on-year to $1,687.8 crore in the quarter under review, while finance charges increased 28.2% year-on-year. year-on-year to reach $3,939.6 crore.
Summary of news:
- IRFC and India Infrastructure Finance Company sign agreement
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