Icra retains Gifco’s FD rating at ‘MA’

Our Corporate Bureau

Kolkata, Oct 30: Investment Information & Credit Rating Agency (Icra) Ltd has reaffirmed the “MA” rating assigned to the fixed deposit programme of Gove Investment & Finance Co Ltd (Gifco). The rating indicates adequate safety.

According to a press statement issued by Icra here on Tuesday, the rating takes into account Gifco’s satisfactory asset quality, improved collection performance, comfortable liquidity position and favourable asset liability matching.

The rating also takes into account the small asset base
and the pressure on margins in the hire purchase and lease business due to increasing competition.

It is learnt that increasing competition from larger financial institutions led Gifco to reduce its leanding rates.

Meanwhile, competitive lending rates enabled the company to increase disbursements sharply from Rs 3.39 crore in 1998-99 to Rs 6.91 crore in 1999-2000 and Rs 7.14 crore in 2000-01.