Hope to double the recovery from NPA resolutions in FY19, says IFCI

Saddled with bad loans, the country's oldest financial institution IFCI expects to recover about Rs 20 billion from the resolution of non-performing assets (NPAs) during the current fiscal. The state-owned term lender has also lined up some of its non-core fixed assets including a commercial real estate for sale in 2018-19 provided they fetch good value, IFCI Managing Director E S Rao told PTI. The net NPAs or bad loans of IFCI were at Rs 51 billion at the end of last financial year, March 31, 2018, he said. 

"Learning curve is there in NCLT activity...we are expecting good recovery would start happening this year. Against the target of Rs 10.5 billion, we achieved Rs 9.6 billion last fiscal. That effort would continue even this year. We are expecting a recovery of Rs 18-20 billion for this financial year," he said. Enough of provision has been done, so the recovery would add to the bottomline of the company and also bring down the NPA level.