IDFC today said it has learnt right lessons on issuing retail tax-saving infra bonds and will be hitting the market in second quarter of FY 12 with a fresh issue, hoping to improve on the Rs 1,400-crore it had mopped up last year.

“We have learnt the lessons as to how to place these things (the bond issue) on the market…last year we did Rs 1,400-crore in three tranches and this year we expect to do better than that,” the company’s Managing Director and Chief Executive, Rajiv Lall, told reporters here.

When asked about a time-frame to hit the market with the proposed issue, he said, “Probably in the second quarter (July-September 2011)”.

Tax saving retail infra bonds were introduced after an amendment in the Income Tax Act last year which allow tax payers an additional window of tax deduction for investments up to Rs 20,000.

IDFC and L&T Infrastructure Finance came out with their issues which were met with lukewarm response.

IDFC, which is notified as an infrastructure finance company by the Reserve Bank, is targeting a 25-30% growth in advances current fiscal, Lall said, adding sectors like road building, renewable energy and transmission and distribution in power will drive the growth.

On the fund raising front, it is planning to go for an External Commercial Borrowing this fiscal, Lall said, declining to disclose the specifics. The company reported an annual profit of Rs 1,282 crore in FY 11, up by around 20% on a strong rise in advances and the core interest income components.

However, the non-interest or fee-based income was down 8% to Rs 875-crore on account of base effect resulting because of capital gains on principal investments not materialising, Lall said.

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June 2021