IFCI seeks more funds from banks
By Our Banking Bureau | 02 Nov 2001
Mumbai: Despite receiving Rs 400 crore from the Indian government, and a promised infusion of Rs 600 crore from existing shareholders, the Industrial Finance Corporation of India (IFCI) is now seeking more funds for its turnaround programme.
IFCI has approached banks for a long-term loan of Rs 1,000 crore, besides negotiating for short-term loans and lines of credit. IFCI is also in talks with banks and institutions for deferring its payment liabilities.
In addition to the above, IFCI has sold the loans extended to various hotels (amounting to Rs 40 crore) to the Tourism Finance Corporation of India, realising Rs 45 crore. It has also sold a loan of Rs 15 crore to the UTI and debentures worth Rs 8 crore to a private dealer.
IFCI has also obtained a short-term loan facility of Rs 100 crore from UTI Bank against collaterals worth Rs 125 crore. Yet, the institution faces an immediate asset-liability mismatch of Rs 160 crore, as talks with some banks for rollover of some debts have failed.
