By Anjana Das
New Delhi, June 21 (IANS) State-run development financial institution IFCI has recovered Rs 2,552.45 crore from its 10 large non-performing asset (NPA or bad loan) accounts and unquoted investments in 2018-19, of which recoveries through the NCLT and redemption of strategic receipts (SR) were Rs 970.37 crore, informed sources said on Friday, citing the company's summary of NPA recoveries.
IFCI recovered Rs 1,207.51 crore from NPAs in the last fiscal, sources said, adding that out of this, the recoveries through the National Company Law Tribunal (NCLT) stood at Rs 447.98 crore, from others at Rs 527.47 crore, and miscellaneous recoveries at Rs 232.06 crore, the summary said.
The IFCI stock was trading higher by 1.22 per cent in early trade on Friday at Rs 8.30 a share on the BSE.
The SR redemption during the last fiscal amounted to Rs 554.65 crore, of which SR redemption under NCLT cases came to about Rs 522.39 crore and Rs 32.26 crores from others.
The Unionb Budget in 2017 had allowed banks to raise capital by encashing SRs issued by asset reconstruction companies (ARCs). This helped create a secondary market for bad loans as it enabled banks to exit from these. Entities which an have appetite for distress assets can buy these SRs.
On a break-up the summary stated, Rs 1207.51 crore came from NPA recovery (Others, NCLT and miscellenious), Rs 554.65 crore sourced from SR redemption (NCLT and miscellinous sources) and Rs 790.29 crore from unquoted equity.
Currently, the Centre holds 56.42 per cent stake in IFCI. Besides the government's proposed capital infusion, IFCI is also pinning its hopes on approval from the Centre for offloading stake in certain non-core assets, including from some of its subsidiaries, to garner up to Rs 1,000 crore.
Moreover, the company is also hoping to make strong recoveries from the cases referred to the NCLT. IFCI can also sell its 3 per cent stake in the National Stock Exchange (NSE).
(Anjana Das can be contacted at anjana.d@ians.in)
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