IFCI

Like the rest in the clan, IFCI too posted a loss, thanks to the hefty provisioning. It reported for Q4Fy16, a net loss of Rs.101 crore v/s net profit of Rs.120 crore in Q4FY15. This was despite a 15% increase in total income at Rs.1024 crore.

Provisioning for the quarter was at Rs.484 crore, a huge jump from that of Rs.48 crore (YoY), a whopping 10 times increase. IFCI has stated that this was on account of one power project account where provisioning of Rs. 188 crore and interest income reversal had to be undertaken, to keep in tune with the regulations of RBI. But for this one provisioning, IFCI would not have had to report a loss in Q4.

Asset quality has deteriorated. Gross Non-Performing Assets (NPAs) and net NPAs as on March 31 have increased to 13.05 per cent and 9.54 per cent respectively vis-a-vis 10.28 per cent and 7.18 per cent as on March 2015, because of the downgrading of 15 standard accounts for 2015-16 (Rs 1,585 crore), including seven cases in fourth quarter of the fiscal (Rs 1,128 crore).

It ended FY16 with a 35% drop in net profit at Rs.337 crore.