In order to improve the financial health of the Industrial Finance Corporation of India (IFCI), in April 2021, the Government has infused Rs 200 crore capital in IFCI through issue of equity shares. After the capital infusion, the government’s holding in IFCI was increased from 61.02 per cent to 63.8 per cent.
Background: In the budget of FY21, the government had committed for fundingRs 200 crore to IFCI. In March 2020 also, the government infused Rs 200 crore.
About IFCI’s financial status in Q3FY21:
- Loss: In the third quarter (Q3) of FY21, IFCI has recorded a consolidated net loss of Rs 717.99 crore as compared with the net profit of Rs 335.38 crore in Q3FY20
- Income: The consolidated total income of IFCI for Q3FY21 shows an 11.2 per cent decrease from its Q3FY20’s net income i.e. from Rs 687.36 crore to Rs 610.12.
Key points about IFCI:
- IFCI, India’s oldest term lender was set up as a Statutory Corporation in 1948 for providing medium and long term finance to the industry.
- Currently, IFCI is a Government Company as Government is holding 63.08% of the paid-up capital of IFCI.
- IFCI is also registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit taking Non-Banking Finance Company (NBFC-ND-SI)
Recent Related News:
On 11th December 2020 Finance Ministry notified the Viability Gap Funding (VGF) scheme to provide financial support to Public-Private Partnerships (PPPs) in selected Infrastructure projects. The selection of Private companies will be done through a transparent, open and competitive bidding process.
About The Industrial Finance Corporation of India (IFCI):
Establishment – 1948
Headquarters – New Delhi
Deputy Managing Director – Shri Sunil Kumar Bansal
