Asset quality is in good shape: IDFC

MUMBAI: The asset quality of Infrastructure Development Finance Company (IDFC) is in good shape despite substantial exposure to the power sector, a top company official said today.

"Our asset quality is in very good shape. All our portfolios are doing well," IDFC executive director Vikram Limaye said here on the sidelines of announcing the issue of the second tranche of tax-saving long-term infrastructure bonds.

As per the company, the bond issue was opened for subscription yesterday and will remain open till February 25.

Present issuance is the second tranche of bond issue by the infra firm which aims to raise up to Rs 4,400 crore at an interest rate of 8.70 percent payable annually or compounded annually.

In the first tranche of issue, it had raised a total of Rs 538.08 crore from approximately 2.7 lakh investors through its long term infrastructure bonds.

Referring to lending activity in the power sector, which is sitting on a Rs 70,000 crore loss, Limaye said the company is also investing in solar, wind and other renewable energy projects barring thermal projects.

While 42-43 percent of its loan are to the power sector, around 24 percent are to transportation and the telecom sector each as of now.

"This ratio may change in the future depending on the credit demand from a sector," he said.

IDFC reported a growth of 54.9 percent in its net profit for the September quarter at Rs 524.27 crore compared to Rs 338.39 crore a year earlier.

Revenue of the company increased by 40.9 percent to Rs 1,714.92 crore during the period as compared to Rs 1,216.75 crore last year.