<p>India is considering pumping about Rs 2,000 crore ($242 million) into state-run IFCI Ltd. and merge it after with its unit, Stock Holding Corp. of India in an attempt to rescue the beleaguered lender, according to people familiar with the matter.</p>.<p>Prime Minister Narendra Modi’s administration is seeking to make the capital infusion into loss-making IFCI to bolster its balance sheet and reduce its debt burden before considering a merger, the people said, asking not to be named as the information is not public.</p>.<p>IFCI has reported annual losses for at least four straight years to March 31, 2022 and has lost more than 17% of market capitalisation in the past year. </p>.<p>In July, Care Ratings Ltd. flagged rising bad-debt ratio and persistent losses as concerns for IFCI Ltd. The government on the other hand has been looking at cutting down its exposure in loss-making units through sale or closures, though it has spent billions of dollars to bail out state-run banks weighed down with soured loans.</p>.<p>No final decision has been taken on IFCI, and the government can still drop the merger and cash infusion plan, they said.</p>.<p>Emails sent to IFCI and Stock Holding Corporation went unanswered, and the finance ministry spokesperson declined to comment.</p>.<p>Stock Holding Corporation offers share depository services in India and was set up as a subsidiary of IFCI Ltd. The 32-year- old company, counts Life Insurance Corp. of India, the nation’s largest insurer, among its backers, according to information available on its website.</p>
<p>India is considering pumping about Rs 2,000 crore ($242 million) into state-run IFCI Ltd. and merge it after with its unit, Stock Holding Corp. of India in an attempt to rescue the beleaguered lender, according to people familiar with the matter.</p>.<p>Prime Minister Narendra Modi’s administration is seeking to make the capital infusion into loss-making IFCI to bolster its balance sheet and reduce its debt burden before considering a merger, the people said, asking not to be named as the information is not public.</p>.<p>IFCI has reported annual losses for at least four straight years to March 31, 2022 and has lost more than 17% of market capitalisation in the past year. </p>.<p>In July, Care Ratings Ltd. flagged rising bad-debt ratio and persistent losses as concerns for IFCI Ltd. The government on the other hand has been looking at cutting down its exposure in loss-making units through sale or closures, though it has spent billions of dollars to bail out state-run banks weighed down with soured loans.</p>.<p>No final decision has been taken on IFCI, and the government can still drop the merger and cash infusion plan, they said.</p>.<p>Emails sent to IFCI and Stock Holding Corporation went unanswered, and the finance ministry spokesperson declined to comment.</p>.<p>Stock Holding Corporation offers share depository services in India and was set up as a subsidiary of IFCI Ltd. The 32-year- old company, counts Life Insurance Corp. of India, the nation’s largest insurer, among its backers, according to information available on its website.</p>