MUMBAI, Dec 25: The five all-India financial institutions -- IDBI, ICICI, IFCI, IIAI and SIDBI -- registered a 12.70 per cent dip in sanctions in 1996-97 while the disbursements grew by 7.20 per cent. The five institutions together disbursed Rs 33,312 crore and sanctioned 45,876 crore during the fiscal.

The total debt raised by the five institutions together amounted to Rs 32,313 crore. Of this, the rupee debt amounted to Rs 26,255 crore while the foreign component stood at Rs 6,058 crore.

The financial assistance sanctioned and disbursed by Industrial Development Bank of India (IDBI) stood at Rs 17,050 crore and Rs 11,439 crore, respectively. While sanctions fell by 4.2 per cent, disbursements grew by seven per cent.

The decline in sanctions largely reflects a subdued investment climate for large projects and decline in operations under non-project loans and capital market products.

The sanctions and disbursements of Industrial Credit and Investment Corporation of India (ICICI) and SCICI during the year aggregated Rs 14,313 crore and Rs 11,181 crore respectively, showing a decline of 27.1 per cent in sanctions and an increase of 16.7 per cent in disbursements over the year.

During the year, the industry-wise distribution of IDBI's financial assistance mainly consisted of core sector industries such as iron and steel, oil exploration and refining, cement and fertiliser which accounted for 25.2 per cent of total sanctions, followed by the infrastructure sector comprising power and telecom (16.3 per cent) and chemicals and chemical products (15 per cent).

Of ICICI's total sanctions, the private sector accounted for a major share at Rs 11,681 crore, followed by the public sector at Rs 2,209 crore and the joint sector at Rs 423 crore.

During the year, Industrial Finance Corporation of India (IFCI) sanctioned and disbursed Rs 7,212 crore and Rs 5,157 crore indicating a decline of 30 per cent in sanctions and an increase of 13 per cent in disbursements over the previous year.

IFCI Financial Services, incorporated during the year 1994-95 commenced business during 1996-97. The merchant banking transactions stand transferred to the new outfit. During the year, IFCI raised rupee funds amounting to Rs 6,041 crore. Foreign currency borrowings of IFCI during 1996-97 through external commercial borrowings and other routes amounted to $300 million and DM4 million.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.