In a move that might give a fillip to affordable-housing finance projects, state-owned India Infrastructure Finance Company Ltd (IIFCL) is planning to enter this real estate segment. “So far, we have not been involved in affordable housing financing. However, we aim to enter this segment soon,” said a top IIFC.
A wholly owned Union government company established in 2006, IIFCL provides long-term financial assistance to viable infrastructure projects. Since September 2013, it has been under the regulatory provision of the Reserve Bank of India (RBI) as a registered non-deposit-taking non-banking financial company.
The company was in discussions with several state governments, including Andhra Pradesh, Tamil Nadu, Manipur, Gujarat, Meghalaya, and Odisha, as well as housing and urban development departments across states.
IIFCL’s standalone net profit increased by 44 per cent to Rs 1,552 crore in 2023-24, driven by increased lending and improved asset quality. The company financed 760 projects with a total outlay of Rs 13.8 trillion during the year. Its standalone portfolio grew 21 per cent year-on-year to Rs 51,017 crore in 2023-24. As of March 2024, IIFCL’s gross non-performing asset ratio declined significantly to 1.61 per cent from 4.76 per cent the previous year and 19.70 per cent as of March 2020.
