IDFC has plans to grow 3 times in 3 years

IDFC's Managing Director Rajiv Lall was roped into IDFC in 2005 by HDFC's Deepak Parekh. Prior to that Lall was a partner in Warburg Pincus in Newyork followed by his profile as Head of Asian Economic Research in Morgan Stanley Asia, Economist at World Bank in Washington.

Such high profile person is indeed the need of the hour to head India's premier Infrastructure finance company, which aims to grow by three times in three years. Many investors would be holding IDFC in their portfolio. By reading the below mentioned highlights, they can hold on to IDFC with much more confidence.

(1) IDFC's Project finance accounts more than 80% of total turnover
(2) It has lent funds to several companies like Quippo, wipro, Green Infra etc.
(3) Apart from that it does invest directly in projects and companies.
(4) IT is involved in several PPP road projects to tune of $ 120 million.
(5) Another $70 million has been invested in three power assets
(6) In Adhunik mettalic project and in Hanjer Biotech it has invested $ 50 million each.
(7) It has invested another $35 million in GMR Power's SPV
(8) $30 million in chennai based Marg group's Karaikal Port project

And Now the key points:
(1) Though there has been sizable speculation that IDFC may opt for the new banking licence to be issued by RBI, Lal says he will let the opportunity pass by this time. The reason : IDFC was formed with a focus of infrastructure. More over banking funds are for short term and Lall is looking for long term funds.
(2) IDFC's Net Non perfoming assets (NPA) ratio is at 0.2% with a capital adequacy ratio of 26%.
(3) IDFC has been the first company to be granted the IFC (Infrastructure Finance Companies) status. An IFC does not need the central bank's nod to raise overseas funds equivalent to or less than half its owned funds.

With option to raise ECB at its own will and the right to raise money in Infrastructure bonds under 80ccf, IDFC has the potential to grow aggressively. It would be worth staying invested in IDFC as India realizes its Infrastructure dreams.