‘Measures taken by IIFCL will keep NPAs under check’
IIFCL has set up a specialised recovery and NPA mgmt dept and has strengthened this dept with officers with specialised skills in recovery and NPA management: Par panel
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New Delhi: Appreciating the measures taken by IIFCL, a Parliamentary panel said initiative taken by the state-owned entity will keep bad loans under check and also help it in discharging its role as a pioneer lender in financing infrastructure projects.
India Infrastructure Finance Company Limited (IIFCL) is a public sector financial institution established in January 2006 that is wholly-owned by the government of India. According to the Committee on Public Undertakings (COPU) submitted recently in Parliament, measures taken will go a long way in improving and strengthening the functioning of IIFCL.
The company has put in place a Board approved Management Policy which lays out the Directives and Guidelines for time-bound resolution of NPA by taking proactive actions. The proactive actions are towards close monitoring, constant follow-up and evolving suitable modes for early resolution/ recovery of dues in line with the prescribed norm/guidelines of RBI and other applicable statutory/ regulatory authorities or directions from the central government, the report said.
IIFCL has set up a specialised recovery and NPA management department and has strengthened this department with officers with specialised skills in recovery and NPA Management, the report titled 'Review of Loans to Road Projects relating to India Infrastructure Finance Company Limited (IIFCL)' said. The capacities were further strengthened with external experts including an independent High Level Advisory Committee which is chaired by retired Judge of the Madras High Court and two former Executive (whole-time) Directors of Public Sector Banks and Financial Institutions, it said. "Similarly, to monitor the utilization of funds for further disbursement, IIFCL informed that it has taken several measures such as meaningful scrutiny of progress reports, balance sheets of borrowers, regular inspection of borrower's assets, books of accounts including 'no-lien' accounts maintained with other banks, and conducting regular on-site visit of the projects, etc," it said.
Highlighting the importance of site visits, the panel headed by senior BJP leader Santosh Gangwar said, it is the key elements instituted for effective monitoring of the project for securing project viability and ensuring quality of loan assets.
