IFCI Q1 profit down 41 pc to Rs 55 crore

NEW DELHI: Government owned non-banking finance company IFCI today reported 41 per cent decline in its net profit at Rs 55.11 crore for the first quarter ended June of 2013-14 due to increase in provisions for bad assets.

The company had posted net profit of Rs 93.61 crore for the corresponding quarter for April-June of 2012-13.

Total income of the company also fell by 15.7 per cent to Rs 561.53 crore in the first quarter of 2013-14, from Rs 666.60 crore a year ago, it said in a filing to the BSE.

The company's profits fell on the back of write off or provisions for bad assets to the tune of Rs 53.31 crore in the first quarter of the current fiscal.

In the same quarter of 2012-13, the company had made provisions of only Rs 18.30 crore for bad assets.

IFCI caters to the long-term finance needs of the industrial sector.

In a separate filing to the exchange, IFCI said the government has nominated Arvind Kumar, Joint Secretary of the Department of Financial Services as a board director.

"...Ministry of Finance has nominated Arvind Kumar, Joint Secretary, Department of Financial Services (DFS) as Director on the Board of the Company in place of Sanjeev Kumar Jindal with immediate effect," it said.

Shares of the company today closed at Rs 21.80 apiece on the BSE, down 4.8 per cent from the previous close.