The RBI also pointed out certain deficiencies in the corporation's post-disbursement supervision procedure.

However, IFCI, in a note, has said that action has already been taken on these issues.

The corporation has also strengthened the internal audit system on the basis of the RBI's suggestions. Internal audit is now being done for all regional offices twice a year and headquarters departments annually.

The RBI examiners had suggested improvement in monitoring of asset-liability mismatches -- IFCI has taken corrective action in this regard.

On the basis of RBI's advice, the IFCI board is reviewing the investment policies, including the policy for treasury operations and money-market transactions.

In some cases, the RBI had observedthat there was some short provisioning. In this regard, IFCI had said that there had been some interpretational differences of the central bank's guidelines for which discussions were held at the highest level and actions taken on the basis of classifications received from the RBI.

The RBI inspectors had suggested that waivers and write-offs due to reliefs and concessions/one-time settlements should be reported to the board, which the institution has already taken care of.

Also, on the basis of the RBI's suggestion on delegation of power, which was reviewed in December 1988, IFCI has issued a comprehensive circular based on the delegation of powers approved by the board.

Some observations were made on the inclusion of certain items for calculation of the capital adequacy ratio, which have now been taken into account while calculating the CAR as on March 1998.

The Sebi also has, for the first time, carried out the inspection for the debenture-trusteeship work handled by the corporation and the reportis awaited.

The RBI has been carrying out inspection of the financial institution since 1996-97. The central bank's second inspection with reference to IFCI's position as on March 1998 was completed on June 1998 and the report is awaited.