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IIFCL reports 36% decline in FY26 profit despite record infrastructure financing growth

#Taxation & Finance News#Infrastructure#India
Last Updated : 2nd Jun, 2026
Synopsis

• India Infrastructure Finance Company Limited (IIFCL) reported a net profit of INR 1,379 crore for FY26, a decline of 36% from INR 2,165 crore in the previous fiscal, primarily due to foreign exchange fluctuations.
• The state-owned infrastructure financier recorded its highest-ever annual sanctions of INR 57,680 crore and disbursements of INR 32,972 crore during the year.
• IIFCL's standalone loan book grew nearly 17% to INR 81,715 crore as of March 31, 2026, while cumulative standalone disbursements reached approximately INR 1.89 lakh crore.
• Asset quality strengthened significantly, with the gross non-performing asset (NPA) ratio declining to 0.4% and net NPA reducing to zero.
• The company's net worth rose to INR 17,898 crore and its capital adequacy remained well above regulatory norms, supporting continued infrastructure financing activity across sectors.

India Infrastructure Finance Company Limited (IIFCL) reported a net profit of INR 1,379 crore for the financial year ended March 31, 2026, marking a 36% decline from INR 2,165 crore recorded in the previous fiscal. The state-owned infrastructure finance company attributed the fall in profitability primarily to foreign exchange fluctuations, even as it registered record lending and disbursement activity during the year. 
The company achieved its highest-ever annual sanctions of INR 57,680 crore in FY26, reflecting growth of around 13% compared with the preceding financial year. Annual disbursements rose 16% year-on-year to INR 32,972 crore, highlighting continued demand for infrastructure financing across the country. 
Speaking about the company's performance, Managing Director Rohit Rishi said the growth in sanctions and disbursements reflected sustained momentum in financing support for infrastructure creation. He noted that IIFCL continued to expand its presence across multiple infrastructure segments while maintaining a balanced and diversified lending portfolio aligned with national development priorities and emerging opportunities. 
As of March 31, 2026, IIFCL's cumulative standalone disbursements had reached approximately INR 1.89 lakh crore. On a consolidated basis, total disbursements crossed INR 2.14 lakh crore, indicating the institution's growing role in supporting India's infrastructure development agenda. 
The company's standalone loan book expanded to INR 81,715 crore by the end of FY26, registering growth of nearly 17% over FY25. The increase reflects continued lending activity across infrastructure sectors and a steady expansion of the company's financing portfolio. 
IIFCL also reported an improvement in asset quality during the fiscal. The gross non-performing asset (NPA) ratio declined sharply to 0.4% from 1.11% a year earlier, while the net NPA ratio reduced to zero. The improvement indicates lower stressed assets and stronger recoveries within the loan portfolio. 
The company's capital position strengthened further during the year. Net worth increased to INR 17,898 crore in FY26 from INR 16,395 crore in the previous fiscal, enhancing its lending capacity and capital base. IIFCL maintained a Capital to Risk-Weighted Assets Ratio (CRAR) of 20.53% as of March 31, 2026, remaining comfortably above prescribed regulatory requirements. 
The company also reported sustained growth in its core operations over the longer term. Operating income nearly doubled over the past five years, rising from INR 3,618 crore in FY22 to INR 6,972 crore in FY26. Operating profit increased from INR 1,168 crore to INR 2,197 crore during the same period, reflecting growth in lending operations and continued expansion of infrastructure financing activities. 
Source - PTI

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