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Indian Railway Finance Corporation (IRFC) Limited is a company whollyowned by the Government of India acting through the Ministry of Railways (MoR). The company is registered with the Reserve Bank of India as a NBFC (Systematically Important) and is classified under the category of an “Infrastructure Finance Company” under Section 45-IA of the Reserve Bank of India Act, 1934.

IRFC Ltd is the dedicated market borrowing arm of the Indian Railways with a primary business of financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles. In addition, the company also extends debt financing to Other PSU entities consistent with its objective of being the principal source of finance for the Indian Railways.

In Fiscals 2017, 2018, 2019 and 2020 (revised estimate), the company was responsible for financing 72%, 93%, 84% and 76% of the rolling stock purchased and leased to the MoR (Source: MoR), respectively.

The total value of Rolling Stock Assets financed by the company as on 31st March 2020 and as on 30th September 2020 was Rs. 2,23,810.78 cr and Rs. 2,34,627.17 cr, respectively. The Total Revenue from operations grew by 20.7% CAGR from Rs. 9,207.84 cr in FY18 to Rs. 13,421.09 cr in FY20 and currently stands at Rs. 7,384.83 cr for H1FY21.

The AUM, which represents the sum of total lease receivables, loans to Other PSU Entities, and advances against leasing of Project Assets, have grown by 31.2% CAGR from Rs. 1,54,534.67 cr as on 31st March 2018 to Rs. 2,66,136.99 cr as on 31st March 2020.

The AUM as on 30th September 2020 stood at Rs. 2,78,007.59 cr. NIMs for FY20 were stable at 1.38%, whereas NIMs for the half year ended September 2020 stood at 0.71%. The company reported NIL NPA with CRAR of 395.4% as on March 2020. The higher CRAR is mainly on account of the company’s ~97.7% exposure to MoR, which is considered as risk free.

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