Integrated infrastructure finance company IDFC has been granted the regulatory approval by the RBI to utilise Rs 2,500 crore non-distributable statutory reserves. The amount will be used for creation of specific provisions against stressed assets. These additional provisions are being created after a careful examination of the stressed assets portfolio and in accordance with our philosophy of prudent risk management and transparency.
In an earlier filing, IDFC had said that it will make an additional provision in the second quarter of this fiscal against coal and gas power assets, as it transitions into a bank by the end of the period. IDFC said with these additional provisions, its net worth will reduce by approximately Rs 1,600 crore.
IDFC
- IDFC provides finance and advisory services for infrastructure projects as well as asset management and investment banking.
- IDFC was incorporated on 30 January 1997 with its registered office in Chennai and started operations on 9 June 1997.
- In April 2014, RBI grants in-principle approval to IDFC to set up banks. In June 2015, RBI officially granted a banking licence to IDFC.
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