New Delhi: India Infrastructure Finance Company Limited (IIFCL) has posted record performance with highest ever standalone Sanctions and Disbursements at Rs.25,120Crore and Rs.10,445 Crorerespectivelyduring the financial year 2021-22, continuing with the trend of performance recorded in the previous year. The Cumulative Sanctions and Disbursements stood at Rs.1,84,207Crore and Rs.91,822 Crore as at March 31, 2022.
Strengthened Loan Portfolio
IIFCL recorded YoY growth of ~7% in its stand-alone portfolio to Rs. 39,352 Crore in FY 2021-22 from Rs. 36,689 Crore in FY 2020-21, despite the challenges faced due to the Covid-19 pandemic.
Increased Profitability and Networth
IIFCL’s stand-alone Profit after Tax (PAT) has grown by 80% over that of previous year to Rs. 514 Crore in financial year 2021-22 (up from Rs.285 Crore in FY 2020-21), thereby continuing its turn-around performance commenced in the previous year. The Company continued to add value as its Networth increased to Rs. 11,737 Crore in FY 2021-22 from Rs. 10,654 Crore in FY 2020-21.
Improvement in Asset Quality and Recovery
IIFCL has been able to arrest the declining asset quality trends and achieve a notable reduction of Net NPA to 3.65% (down from 5.39% in previous year) and Gross NPA to 9.22% (down from 13.90% in previous year) as on 31st March 2022. The Provision Coverage Ratio increased to 62.75% in FY 2021-22 from 61.24% in the previous year, thereby improving the robustness of the company’s balance sheet.
As on March 31, 2022, the proportion of IIFCL’s infrastructure finance assets rated A and above stood at ~67% (up from ~54% as on March 31, 2021), thereby reflecting the higher quality asset profile of the company.The Company’s stance of aggressively pursuing recoveries has yielded highest ever recovery of around Rs. 780 Crore during FY 2021-22, as compared with Rs. 618 Crore during the previous year.
IIFCL’s Foray into Bonds and InvITs
Taking its developmental role further, IIFCL for the first time ever, ventured into investment in infrastructure bonds being issued by project companies in FY2021-22. IIFCL has invested Rs. 975 Crore in project bonds, which includes
Rs. 325 crore in bonds issued by a renewable energy InvIT. IIFCL’s investment in bonds would not only lead to further improvement in IIFCL’s asset quality, but would also boost the availability of longer-tenor debt finance for infrastructure projects. IIFCL is also eyeing lending opportunities to Infrastructure Investment Trusts (InvITs) this year and aims to further strengthen our balance sheet and improve its asset quality.
The continued record performance of the company for two consecutive years showcases the potential of IIFCL to contribute India’s Infrastructure development through flagship programmes such as the GatiShakti, National Infrastructure Pipeline, National Monetization Pipeline, BharatmalaYojana, SagarmalaYojana, among others.
Over the last two years, IIFCL has incorporated a market-oriented dynamism and agility in all its core activities, with an improved credit policy, adopting an integrated risk management policy, segmented risk-based pricing, strengthening efforts for recovery, venturing into newer products, active treasury management, digitalization of project monitoring to ensuring progress-linked disbursements and designing growth based on internal accruals.