IFCI open for seat on Maytas Infra board

February 19th, 2009 - 9:15 pm ICT by IANS  

Chennai, Feb 19 (IANS) As the government moves to reconstitute the board of Maytas Infra Ltd, an associate firm of fraud-hit Satyam Computer Services, financial institution IFCI Limited says it is ready to accept a seat on it.
“It is right on the part of the Indian government to approach the Company Law Board (CLB) to reconstitute the Maytas Infra board. Maytas Infra has to severe its connections with the Satyam Computers so that it does not suffer from a crisis of confidence,” IFCI chairman and managing director Atul Kumar Rai told reporters Thursday.

He was here to inaugurate the corporate office of IFCI Financial Services Limited (IFIN), the share-broking subsidiary of IFCI.

According to him, IFCI, which has a 17.4 percent stake in Maytas Infra, is ready to accept a seat in the reconstituted board if given an opportunity.

“We are holding the stake for a long time. We didn’t hike our stake in a crisis-hit company like others,” he added.

Speaking about IFCI’s operations, he said the company sanctioned loans totalling Rs.30 billion (Rs.3,000 crore) and disbursed Rs.24 billion (Rs.2,400 crore) this fiscal.

Queried about the company’s rejig plans and bringing in a strategic investor, he said: “Our capital adequacy ratio is 21 percent, up from minus 40 percent a few years ago. So there is no need for a strategic investor just to infuse funds. However, we are committed for a strategic investor.”

According to him, the company would close this fiscal with a net profit of Rs.6 billion (Rs.600 crore).

“Last year we made huge profits from treasury operations which are not available this fiscal. So it is not right to compare the current year figures with last year’s.”

Detailing the plans for the financial services subsidiary IFIN, he said: “Given that the economy is going through a slowdown and stock markets are down, it is right time to expand in a calibrated manner.”

IFIN managing director Chandra Ramesh said: “After focussing on the institutional segment, the company now will focus on the retail investors for share-broking while expanding its basket of services.”

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