IFCI Says It Will Recover More Than Rs 1,000 Crore Bad Loans This Financial Year
IFCI plans to increase provision buffer in an effort to bring down non-performing assets.
State-run long-term infrastructure lender IFCI Ltd. expects to recover bad loans worth more than Rs 1,000 crore in the current financial year, its Managing Director and Chief Executive Officer Emandi Sankara Rao said.
State-owned banks and non-banking financial companies such are under increasing stress to recover their bad loans. Earlier this month, IFCI, along with State Bank of India and United Bank of India invited bids from eligible banks, financial institutions, asset reconstruction companies and non-banking financial companies to prune non-performing assets of more than Rs 16,349 crore from their respective balance sheets, according to a report by newswire agency PTI.
The lender plans to increase its provision coverage ratio to 52 percent in an effort to bring down non-performing assets, Rao told BloombergQuint in an interview. Besides, the NBFC will also conclude some its asset monetisation deals this month to boost liquidity, he said.
Watch the full interview here.