The move to change the name of the company is part of the financial institution's plan to develop and strengthen "IFCI" as a distinct brand equity. Change of name has been undertaken as the company is widely known and referred to as "IFCI" in business circles as well as the general public.

Shareholders of the company on Thursday approved the proposal to change the name and the financial institution will make an application to the Government for changing the name.

Of the 32 large non-performing assets (NPA) identified involving Rs 2,004 crore (principal plus interest), nine cases involving Rs 593.7 crore had already been restructured, IFCI chairman cum managing director, PV Narasimham said. Restructuring was likely to be taken up during the current year in respect of another nine cases involving an amount of Rs 550.1 crore, Narasimham said. In addition, he said, four cases involving Rs 231.4 crore had been identified where recovery was feasible through enforcement of security.

"Restructuring is a time-consuming process and is likely to continue over the next two-three years," he said adding that full impact of this restructuring will be realised in terms of improved profitability with a time lag. In some cases, efforts are being made to enforce a change in management. Narasimham said the corporation would come out with its 1:1 rights issue at Rs 10 per share in November-December this year to raise Rs 353 crore. The issue would enable the corporation to shore up its capital adequacy ratio and reduce the debt equity ratio from 12:1 to less than 10:1.

In the current year, IFCI plans to mobilise Rs 4,111 crore for its lending activities through rupee borrowings, preferential capital and rights issue. It also plans to enter the retail market and raise fixed deposits from investors for shorter periods of one-two years. Meanwhile, IFCI has reported lower sanctions and disbursements in the first five months of the current fiscal, as part of its efforts to restructure and consolidate its asset portfolio.

While the sanctions during the July-August period of fiscal 1999-2000 have fallen by 47 per cent to Rs 1383 crore, the disbursements have dropped by 24 per cent to Rs 1343.3 crore.