The NBFC said it would use routes such as selling bad loans to asset reconstruction companies (ARCs), corporate debt restructuring (CDR) mechanism and one-time settlement (OTS) window to improve its asset quality.
At present, our net NPA ratio stands at about 10%. We aim to reduce it by 2 percentage points at the end of this financial year, IFCI deputy managing director Achal Kumar Gupta told journalists.
Gupta said the company was looking at using the CDR mechanism to reduce its stressed assets as RBI had allowed it to join the CDR cell January this year. This year we are a part of the CDR cell. So, we will see very, very less addition of NPAs, he pointed out.
He said the NBFC had already sold bad assets worth Rs. 200 crore to ARCs this fiscal and was also actively looking at selling more NPAs. He, however, declined to divulge details regarding further NPA sale. Our constant approach is there to reduce our net NPA level, the official maintained.
IFCIs gross NPA ratio reduced to 15.6% as of June 30, 2014 from 17.3 % at March, 2014, while its net NPA ratio reduced to 10.8% from 11.4% as at March 31, 2014.
Gupta was in the city for a road show for IFCIs public issue of non-convertible debentures to raise up to Rs. 2,000 crore. The issue is scheduled to close on November 21.