IFCI to sell 2.5% stake in NSE; Q4 profit up 14% to Rs 170 cr

Tags: News
State-owned IFCI has decided to partially sell its stake in NSE, the financial institution said today while announcing a 13.57 per cent jump in profit to Rs 170 crore for the fourth quarter ended March, 2014 on account of lower cost of funds.

Infrastructure lender IFCI at present holds 5.44 per cent stake in the premier bourse.

The board has given the in-principle approval for sale of 2.5 per cent stake in NSE, IFCI Managing Director Malay Mukherjee said.

The country's oldest financial institution initially held 12.44 per cent stake in the Mumbai-based NSE, but sold seven per cent to Goldman Sachs Group Inc, NYSE Group Inc, General Atlantic LLC and Softbank Asian Infrastructure Fund in 2007.

In December, 2012, the financial institution had become a state-owned entity with government getting 55.53 per cent stake by conversion of optionally convertible bonds.

Commenting on profit, Mukherjee said The rise is on account of a decline in cost of funds and reduction in operational expenses

IFCI had a net profit of Rs 150 crore in the January-March quarter of 2012-13.

Its total income in the period under review increased to Rs 830 crore, from Rs 735.38 crore in the year-ago period.

The gross non-performing assets declined to 17.3 per cent from 22.2 per cent at the end of March, 2013.

However, the net NPAs rose to 11.4 per cent from 10.2 per cent.

Net interest margin (NIM) has improved to 2.4 per cent from 2.2 per cent.

During the financial year ended March, 2013, the company's net profit rose by 13 per cent to Rs 508 crore as against Rs 451 crore in same period of 2012-13.

Its total income rose to Rs 2,951.26 crore during the year from Rs 2,759.3 crore in the year-ago period.

The board has recommended 10 per cent dividend or Re 1 per equity share for 2013-2014.

Talking about the current fiscal, Mukherjee said, the company expects the net profit to go up to Rs 750 crore.

Of this, Rs 200 crore is expected to come from treasury income, he added.

Bad assets are expected to come down by 2 per cent from the existing level by end of March, 2015.

Asked if IFCI will once again apply for a bank licence, he said: "Let RBI come out with fresh guidelines on licence. We will study those guidelines and take a decision. At lease, in the current fiscal, we are not approaching the RBI for bank licence."

Of the 25 applicants, including IFCI, for new bank lincences, only two-- IDFC and Bandhan-- were granted universal banking licences.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Signalling good times, current account deficit is likely to grow from here on

    The current account deficit (CAD) numbers for April-June quarter declined sharply to 1.7 per cent of GDP.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Disruptive innovation in education

The past two weeks had a fair share of interesting ...

Rajgopal Nidamboor

Regain the spirit of focused power

For aeons, the human race has been experimenting with a ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture