IFCI mobilises Rs 1,370 crore via private placements till Dec

New Delhi, Jan 4: Despite the difficult phase, IFCI has mopped up about Rs 1,370 crore through private placements of debt during April-December, 2001 while planning to raise more funds through fixed deposit schemes during the fourth quarter.

"We have raised about Rs 970 crore in the first half of this fiscal through private placement.

‘‘In the last three months, we have raised about Rs 400 crore," IFCI chairman VP Singh said here on Friday.

IFCI has not set any target for raising additional funds through private placement of debt in the current fiscal, he said, adding, "it will depend on the funding requirements."

"We have also relaunched our fixed deposit scheme," Mr Singh said. In its Family Deposit’ Scheme, IFCI is offering 8.5 per cent on fixed deposits with maturity period between 1-2 years, 8.75 per cent for 2-3 years, 9.25 per cent for 3-5 years and 9.5 per cent for five years and above.

Raising of over Rs 1,300 crore through private placement and relaunch of fixed deposit scheme assumes importance in the wake of acute financial strain that the FI has experienced during this fiscal.

The government announced a Rs 1,000-crore assistance in August to enable the FI to repay its debts that will mature this fiscal and improve its capital adequacy ratio to over 9 per cent from a little over 6 per cent as on March 2001.

"We have already obtained Rs 400 crore from the government and Rs 200 crore from LIC. Of the Rs 200 crore recap from IDBI, we have obtained Rs 60 crore so far," Mr Singh said.

IFCI is contemplating raising another Rs 200 crore from SBI shortly.
"We have reasonable assurance from the State Bank of India for Rs 200 crore," the IFCI chairman said.

The financial institution might tap the bond market once its credit rating improves after the Rs 1,000-crore fresh fund infusion by the government and promoter FIs.

IFCI will get RBI’s permission for the bonds issue only after its CAR is above 9 per cent.

While improving its fiscal situation, IFCI has restricted its loan sanctions and disursements. Ifci disbursed about Rs 380 crore till the third quarter, Mr Singh said.

— PTI