It has also shown an operating loss of Rs 253 crore, against a Rs 233.97 crore operating profit in 2000-01.
The board of directors of the sick financial institution (FI) met on Friday to take on record the financial results.
Its basic and diluted earnings per equity share (not annualised) stood at -14.57 at the end of March 2002 against -5.09 as on March 31, 2001. IFCI has a paid-up capital of Rs 638.68 crore and preferential share capital of Rs 449.27 crore. The government infused Rs 400 crore last year as tier I capital and Life Insurance Corporation Rs 200 crore as tier II capital in the form of 20-year convertible debentures.
Reserves excluding revaluation reserves declined to Rs 249 crore from Rs 250.35 crore the previous year.
While the cost of borrowing and interest burden fell during the year from Rs 2,520 crore to Rs 2,393.4 crore, its total income too declined from Rs 2,890 crore to Rs 2,248.6 crore.
It has made a higher provisioning for bad and doubtful debts and investments at Rs 631.57 crore against Rs 496 crore the previous year. IFCI has stated that its profitability has been declining over the past few years culminating in an operating loss last fiscal. It has attributed this trend to increased provisioning requirements against assets over the last few years: the time period for substandard assets has been cut from 24 months to 18 months; for identification of NPAs it has been reduced from one year to 180 days in respect of default on principal and; new norms for projects under implementation, as per which now projects with a time overrun of over two years have to be classified as non-performing.
It has also listed external factors like a sluggish industrial climate because of which traditional industries — where IFCI has most exposure — are passing through a recessionary phase. There is thus higher industrial sickness and borrowers are unable to pay. Also the prolonged process of recovery of dues via the legal route and BIFR have added to its troubles.