Financial institution IFCI’s net profit declined by 34 per cent to Rs 131.01 crore for second quarter ended September 30.
The company had profit after tax of Rs 198.26 crore in the same period last fiscal, IFCI said in a filing on the BSE.
The total income of the company also slipped to Rs 695.73 crore as compared to Rs 726.11 crore in the same quarter a year ago.
During the first half of 2011-12, the company’s net profit decreased by 32 per cent to Rs 224.62 crore as compared to Rs 320 crore in same period of the previous fiscal.
Earlier this week, the company allotted 40 crore shares to the Government of India following conversion of bonds. As a result of this, the government’s stake in the company touched 55.5 per cent in the company.
Earlier this month, the board of IFCI had decided to convert government bonds worth Rs 923 crore into equity.
After conversion of the Optionally Convertible Debentures (OCDs), the government holding including the stake of banks and financial institutions have gone up to 68.31 per cent.