Aided by a better yield on its advances, India Infrastructure Finance Company Ltd (IIFCL) has reported a 79 per cent increase in net profit for 2012-13 at Rs 1,047 crore (Rs 585 crore).
The state-owned infrastructure lender recorded 29 per cent increase in interest income at Rs 3,250 crore.
Net interest margin stood at a robust 4.45 per cent for 2012-13 against 3.70 per cent in the previous year.
The sharp increase in net interest margin was mainly due to the resetting of lending rates by the banks (consortium) on past advances, leading to improved yields for IIFCL, S. K. Goel, Chairman and Managing Director, IIFCL, said here on Monday.
For the first time since inception (2006), IIFCL has declared maiden dividend of 8 per cent, involving dividend payout of Rs 221 crore for 2012-13.
This amount has been paid to the exchequer.
Goel said IIFCL was now targeting fresh disbursements of Rs 15,800 crore in 2013-14, substantially higher than the Rs 9,000-crore disbursed in 2012-13.
Asked if the disbursement target was ‘too ambitious’ given the economic slowdown, Goel said it was achievable, as it included a possible Rs 5,000 crore under the takeout-finance scheme this fiscal.
In 2012-13, IIFCL disbursed Rs 2,126 crore under this scheme, a 277 per cent year-on-year growth over Rs 564 crore recorded in the previous year.
The scheme offers infrastructure developers the benefit of lower and stable interest rates than that under direct lending, freeing up their exposure limits with banks.