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IFCI Ltd has posted a loss of Rs 4.25 crore for the quarter ended March 31, 2008 as compared to a net profit of Rs 66.84 crore for the quarter ended March 31, 2007. The total income has decreased from Rs 109.40 crore for the quarter ended March 31, 2007 as compared to Rs 45.13 crore for the quarter ended March 31, 3008. IFCI has posted a profit after tax (PAT) of Rs 102.05 crore for the year ended March 31, 2008 as compared to Rs 89.8 crore in the corresponding period last year. The total income increased from Rs 204.66 crore to Rs 211.14 crore in the same period.

Investment Advisor SP Tulsian told CNBC- TV18 that he thinks that one can buy IFCI at Rs 50.According to him indications of revival of search for strategic partner after the Sterile offer was rejected would enhance its value. Moreover he thinks that given the value of the real estate in possession of the company at Delhi at Mumbai and pace of recovery of NPA make the stock a good buy.

Is IFCI destined to remain single? (Business Standard 26th Dec 2007) Be it a stroke of luck or a jinx, the country’s oldest financial institution, IFCI, will remain single , thanks to all the failed efforts to find a suitor or a partner to merge with. Although it found a suitor in the Vedanta group company Sterlite Industries-led consortium for offloading a 26 per cent stake but could not accept the conditions of handing over the management control to the strategic partner. Earlier, two efforts of IFCI to merge with PNB and IDBI ever since 2004, remained fruitless. More

What is the road ahead for IFCI? (CNBC TV 18- moneycontrol.com) IFCI has called off its stake sale plans completely, after the deal with Sterlite-Morgan Stanley fell through, on management control reasons. CNBC-TV18 Analyst Sajeet Manghat comments on how should IFCI be approached in terms of valuations and what to do with the stock from now on. He said that we are back on the drawing board, as to the valuations of IFCI, especially after the stake sale was called off. The stock has been hammered in the market today. That is primarily because a lot of people have taken positions in the stock, in anticipation of strategic investors coming in or of an open offer coming in. It may also be in anticipation of a multilateral agency, like IOC, coming in and picking up stake, up to 10%. But that is not going to happen anymore and that is the reason why the stock has fallen today, he stated.

IFCI board calls off 26% stake sale process (The Hindu Business Line 20th Dec 2007)In a dramatic development, the board of directors of IFCI on Wednesday unanimously decided to call off the process of inducting a “strategic investor” to whom a 26 per cent stake in the country’s oldest financial institution was to be offered through fresh issue of equity shares. Sterlite Industries-Morgan Stanley combine was the front-runner for the stake as it offered the highest price (about Rs 110 per share) among the three consortia that submitted the financial bids last week. The deal was, however, called off today in the wake of “conditional offer” made in the financial bid by the Sterlite-Morgan Stanley consortium, which was not acceptable to the members of the board, sources in IFCI said.

IFCI fixes conversion price at Rs 107/shr (Business Standard 19th Dec 2007) IFCI has fixed Rs 107 per share as conversion price for debentures amounting to Rs 1,323.99 crore held by creditor banks and insurance companies.The committee of directors of IFCI constituted for the purpose of conversion of zero coupon optionally convertible debentures held by public sector banks and financial institutions, has decided to issue 12,37,37,735 shares at Rs 107 per share to the banks and FIs.

Banks mull measures to curb bulk deposit growth (The Hindu Business Line 19th Dec 2007)With deposit accretions showing little signs of deceleration, banks are beginning to devise methods of discouraging bulk funds. About 30 per cent of deposits now come from bulk funds. Most of the bulk deposits were parked in short duration time deposits. Bankers said despite the informal cap on bulk rates by public sector banks, inflows still continued. Aggregate deposits between April and November this year has grown by Rs 3.44 lakh crore, against Rs 2.54 crore during the corresponding period the last financial year. Time deposits this year till November 30 grew by 3.25 lakh crore. ‘Rising rupee, inflows hit entire industry, not just exports’ (The Hindu Business Line 19th Dec 2007)The Prime Minister’s Council on Trade and Industry today discussed the adverse impact of rising rupee on exports and industry, besides the challenges of managing the surge in dollar inflows into the country. “We are hit ...

Sterlite, Morgan Stanley group front-runner for IFCI stake (Live mint.com 18th Dec 2007)A Sterlite Industries and Morgan Stanley consortium is the front-runner for picking up a 26% stake in IFCI Ltd. “After considering proposals received from three interested parties, Sterlite Industries and Morgan Stanely emerged as the lead player,” an IFCI official said late Monday night. He added a meeting of the board of the company was going on and more details would emerge after it ended. A CNBC-TV 18 report that cited unnamed sources claimed that the consortium had bid between Rs90 and Rs100 a share. It was not immediately possible to ascertain the overall value of the deal because IFCI’s capital restructuring is still in progress. Analysts had previously estimated the size of the deal at between $500 million and $700 million. The reported price per share is lower than the Rs108.4 close the share registered on the Bombay Stock Exchange on Monday. Rupee rise pinches govt projects (Business Stand...

SBI mulls VRS for 40K staff (Business Standard 17th Dec 2007) State Bank of India (SBI) is planning to introduce a voluntary retirement scheme (VRS) for its subordinate staff in the next financial year. The proposed scheme aims to give chance to over 40,000 employees, who find it challenging to work in a computerised environment and competitive market conditions. "The nature of work has changed substantially due to introduction of core banking solutions (CBS) and automation. Besides, the work demands on staff are growing enormously to retain market share. Some of the subordinate staff should get a decent exit option," a senior SBI official said. He, however, ruled out any VRS for the clerical or officer cadre. SBI's total employee base is around 2,00,000. The actual amount payable to employees opting for VRS will be determined by taking into account their number of years of service and the remaining period. IFCI likely to fix bond conversion at Rs 107 (Business Standard...

IFCI may get Rs 1,300 cr from govt, if needed (Business Standard 14th Dec 2007) Clearing the air of confusion, IFCI today said the government will provide Rs 1,300 crore assistance this year to the institution in case there is a need. The statement assumes importance as IFCI is in the last leg of induction of a strategic investor by offering a 26 per cent stake. There were doubts that government may not keep its promise after IFCI started the process to induct an investor. The prospective investors are likely to put in their financial bids tomorrow and the IFCI board will consider the bids on December 17. In 2002-03, the government sanctioned a restructuring package of Rs 5,220 crore to IFCI, which was then experiencing high level of non-performing assets, to service its future liabilities

Interest rates unlikely to fall soon: SBI MD (The Financial Express 12th Dec 2007) Interest rates in India are unlikely to come down in the short to medium term, TS Bhattacharyya, managing director of State Bank of India, the country's biggest bank, said on Wednesday. RBI may tighten norms for forex derivatives (Business Standard 12th Dec 2007)The Reserve Bank of India (RBI) may soon tighten the norms for foreign exchange derivatives, amid several banks and companies facing losses with calls on currency movements going wrong. The norms may require banks to insist on an undertaking from their corporate clients that such deals are being struck only for risk management purposes and not for trading. The bank may also be empowered to obtain a copy of the corporate clients' risk management practices and approval from the top management for the product before striking the derivative structure. Lower rates boost SBI home loans (Business Standard 12th Dec 2007)The lower interest rate...