The government-owned India Infrastructure Finance Company Ltd (IIFCL) wrote off 16 accounts from its balance sheet last year, which was also the year when it reported its first loss at Rs 11.56 billion, since inception in 2006.
Though this may be a reflection of the financial stress in the infrastructure sector, the company’s balance sheet is more an outcome of provisioning requirements than a distress.
A full blow from the lending slowdown has also been shielded with the company turning its focus to hybrid annuity model (HAM) projects in the road sector from 2015 onwards.
It was also the point where it started to take a lead role and do its own appraisals instead of the earlier practice on relying on lead banker’s appraisal, said a senior IIFCL official who did not want to be quoted. Read More
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