Thanks to robust credit growth and shrinking expenses, the government-owned India Infrastructure Finance Company (IIFCL) reported a 47% increase in its net profit at R765 crore in FY15, on Wednesday. The company’s net profit on standalone basis in the previous fiscal was R521 crore.
IIFCL, infrastructure finance NBFC, said its total income rose to R4,060.88 crore in FY15 against R3,917.34 crore in FY14. Net interest margin of the company was better at 4.04% in FY15 compared with 3.4% in 2013-14. With the government recently allowing IIFCL to act as a ‘lead lender’ and sanction loans based on its own appraisal, the company will do better in the current fiscal, said CMD SB Nayar.
Earlier, IIFCL was not allowed to be the ‘lead bank’ in a consortium financing an infrastructure project given its role as a secondary lender. That had prevented it from carrying out independent due diligence and project appraisals.
With the changed rules permitting the financial institution to be the lead bank, it can be the primary lender if need be.