Infrastructure Term Lender IFCI Posts Net Loss Of Rs 718 Cr In Q3

Infrastructure term lender IFCI Ltd on Friday reported a consolidated net loss of Rs 717.99 crore for the third quarter ended December as expenses ballooned amid a drop in income.

The company had posted net profit of Rs 335.38 crore in the same period a year ago.

Consolidated total income during Q3 FY21 was down by 11.2 per cent at Rs 610.12 crore as against Rs 687.36 crore in the same quarter of FY20, IFCI said in a regulatory filing.

Total expenses swelled to Rs 1,471.13 crore as against Rs 681.84 crore earlier, mainly because of a Rs 984.23 crore impairment on financial instruments.

In accordance with RBI's regulatory package related to COVID-19, IFCI said it has maintained an additional provision of Rs 397.15 crore on standard assets and has not recognised such loans as stage 3 (NPA).

Besides, in terms of an interim order passed by the Supreme Court in September, the company said 53 borrowal accounts were not declared as NPA till August 2020 and shall not be classified as NPA till further orders.

"The company has not classified any account as NPA which was not NPA as on August 31, 2020 and has not categorized such accounts as stage 3," it said.

Stock of IFCI closed 0.22 per cent down at Rs 9.01 apiece on BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor