IFCI sanctions up 56%, disbursals down a shade
Our Banking Bureau
MUMBAI, January 20: The Delhi-based Industrial Finance Corporation of India (IFCI) has recorded a marginal 0.84 per cent fall in its disbursements in the first three quarters (April-December) of current fiscal. Its sanctions have, however, risen a whopping 56 per cent.While its sanctions were put at Rs 7,586 crore, its disbursements stood at Rs 3,766 crore. About 18 per cent of IFCI's sanctions and disbursements have gone towards funding such infrastructure projects as power, telecom and ports. "There has been a pickup in credit offtake in the last three months," an official said. The IFCI board, which met in the capital on Tuesday, decided to postpone a decision on a hike in its prime-lending rate following the recent increase in bank rate by 200 basis points to 11 per cent. "We will prefer to wait and watch for the other major institutions' move," an official said. Officials at term-lending institution IDBI are meeting on Wednesday to decide on a hike in the lending rate. Industry sources
indicate that the development financial institution is likely to step up its prime rate by around 75-150 basis points. However, with call rates having more or less stabilised now, the institution may not change its coupon on any of its four instruments in its planned Rs 1,500-crore bond issue. IFCI officials said that the recent hike in bank rate might impinge on the institution's credit offtake marginally. IFCI's peers, IDBI and ICICI, reported strong sanctions growth in the first three quarters of the fiscal. While IDBI recorded a 70 per cent rise in sanctions and a 31 per cent rise in disbursements, ICICI recorded a 112 per cent rise in sanctions and a 46 per cent rise in disbursements.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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