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The India Infrastructure Finance Company Limited (IIFCL), a registered Non-Banking Finance Company-Non-Deposit taking- Infrastructure Financing Company (NBFC-ND-IFC), a wholly-owned Government of India company, is in the dock for extending loans to at least two companies on terminated projects that caused the company a loss of Rs 26 crores. The CAG in its audit report also mentioned that appropriate action must be taken against IIFCL for giving out loans to such companies without following the laid down guidelines and procedures. In its report, the CAG noted, “Due to non-adherence of the provisions of its own Credit Policy, IIFCL extended loan in the projects which had already been terminated and resultantly suffered a loss of Rs 26.20 crore (Rs 13.59 crore plus Rs 12.61 crore written off). CAG recommends that responsibility may be fixed for the lapses pointed out by audit.”

IIFCL in dock for loans to two firms for terminated projects

To boost India's aviation sector and current infrastructure, India Infrastructure Finance Company Limited (IIFCL) sanctioned loans worth ₹8,800 crore for the industry and the need to invest heavily in the industry to achieve the target to develop the civil aviation sector in the country. Being one of the major financiers of airports in India, IIFCL has supported airports with a total project outlay of about ₹74,000 crore. PR Jaishankar highlighted how the IIFCL is present in almost all major airports of the country.

IIFCL gives wings to aviation sector

IIFCL’s asset quality profile stands weak, due to higher disbursements via refinancing and huge write offs.

The company’s profitability profile benefitted from lower operating expenses and credit costs.

The issuer has made timely interest payments.

Shri Padmanabhan Raja Jaishankar, MD

GoI has regularly supported IIFCL by way of regular equity infusions to ensure comfortable capital structure and providing enough headroom for growth plans

IIFCL serves the strategic role in financing economically viable infrastructure projects in the country. The sectors eligible for financial assistance include transportation, energy, water, sanitation, communication and social and commercial infrastructure.

Being a sovereign entity, IIFCL has access to diversified sources of funds and has raised money through bonds, borrowings from banks and various multilateral and bilateral institutions at competitive rates.

Owing to a high capital infusion of Rs.5,797.6 crores from GOI in FY20, net-worth base of the company has remained adequate with tangible net-worth of the company improving to Rs.10,555 crores as on March 31, 2021.

8.55%India Infrastructure Finance Company Limited (Tax Free) 27 Mar 2029

ISIN:

INE787H07396

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India Infrastructure Finance Company Limited

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IIFCL in dock for loans to two firms for terminated projects

IIFCL gives wings to aviation sector

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