Parekh: Holding on

Mumbai, April 20: The Infrastructure Development Finance Company (IDFC) recorded its highest-ever approval, disbursements and profits in 2003-04.

But Nasser Munjee, the man who steered the company through six years of its existence, was missing, having resigned in a huff, apprehending that State Bank of India would take control over his fledgling company.

Ironically, the government mandarins have now decided to maintain IDFC as an autonomous institution and not merge it with SBI.

The board of IDFC met for the first time since its former managing director Munjee and other top brass had put in their papers. On the eve of the meeting, chairman Deepak Parekh decided not to accept the resignations of chief operating officer and acting managing director A. K. T. Chari, chief policy adviser Urjit Patel, chief risk officer L. K. Narayan and IDFC Asset Management Company CEO Luis Miranda. Munjee’s resignation was accepted last month.

It is believed that the board meeting today skirted the recent controversies that led to the mass resignation of senior officials. Instead, the meeting, spanning over a little less than three hours, discussed several policy matters relating to telecom and civil aviation.

A board sub-committee will look for a new managing director. The sub-committee has been formed under Sunil Mehta of Tata AIG who is also an IDFC board member. The other members are SBI chairman A. K. Purwar, finance ministry additional secretary Vinod Rai, Parekh and corporate solicitor Shardull Shroff.

The IDFC board today recommended a 10 per cent dividend, which is Re 1 per share. Total income of IDFC in 2003-04 increased by 39 per cent to Rs 637.08 crore from Rs 458.87 crore in the previous financial year.

In 2003-04, operating income as a percentage of total income was 84 per cent. Expenses increased by 41 per cent to Rs 365.13 crore from Rs 258.47 crore in 2002-03, primarily on account of higher provisions, contingencies and interest charges.

Profit before tax (PBT) increased by 36 per cent to Rs 271.95 crore from Rs 200.40 crore in 2002-03.

Profit after tax increased by 44 per cent to Rs 259.15 crore from Rs 179.95 crore in the previous year.

IDFC said the institution recorded the highest-ever approvals and disbursements of Rs 5,727 crore for 81 projects and Rs 2,704 crore for 59 projects, respectively. IDFC clocked a 149 per cent and 185 per cent growth in approvals and disbursements over those in 2002-03, respectively. Approvals of Rs 2,304 crore for 24 projects and disbursements of Rs 949 crore for 29 projects were taken into consideration.