India Infrastructure Finance Company Ltd (IIFCL) is likely to get capital support of Rs 400 crore from the government during the current fiscal year to fund business growth.
"The government has made a provision of Rs 400 crore keeping in view the business programme and capital requirement of the company," IIFCL chairman and managing director S K Goel said.
The company, wholly owned by the Government of India, provides funds - especially debt of longer-term maturity - directly to eligible projects to supplement other loans from banks and financial institutions.
Currently, the paid-up capital of the company stands at Rs 2,900 crore. Following the capital infusion, that will go up to Rs 3,300 crore.
For the financial year ended March 2013, IIFCL clocked 47.4 per cent jump in net profit at Rs 1,000 crore.
The state-owned infrastructure finance company had earned a net profit of Rs 678 crore in the previous fiscal year.
In 2012-13, the company on a consolidated basis, achieved business growth of 37 per cent in cumulative gross sanctions and 35 per cent in cumulative disbursements.
The company disbursed around Rs 30,400 crore including Rs 2,761 crore under Takeout Finance Scheme and Rs 4,418 crore under Refinance Scheme during the year.
On a cumulative basis, IIFCL sanctioned around Rs 8,000 crore and disbursed around Rs 2,800 crore under the scheme.
During 2012-13, the company raised long-term resources of Rs 7,100 crore from domestic market and multilateral institutions, of which more than 70 per cent has been raised on the strength of its own balance sheet without sovereign guarantee.