The company is IFCI-Industrial Finance Corporation of India. News agency Reuters says that NBFC company IFCI Limited is preparing to improve its operations. Apart from this, the company is short of capital. Under this decision, the company can close its loan giving business. The company can turn into an infrastructure advisory firm. Two government sources told Reuters on Tuesday.

First let us tell you what IFCI does- The company was started in 1948. IFCI is a development financial institution. It has been created by the Government of India to provide long-term financial assistance to the industry, promote the development of manufacturing, infrastructure and other key sectors.

Over the years, IFCI has worked to provide many financial services including term loans, corporate loan restructuring. Although initially it was fully government-owned, now IFCI is a publicly listed company, in which the government is reducing its stake over time. (Merger News: Government company announces merger - Shares ran at full speed - Price doubled in a year) Despite the changes, IFCI remains an important institution in India's economic growth, supporting both public and private sector industries with financial institutions and strategy guidance to advance industry growth and modernization. The Government of India owns about 72 percent of IFCI. Two news have come in 24 hours - earlier it was reported that in the information released by the company on the exchange, it has been told that the board of IFCI has given in-principle approval to consider the integration of IFCI Group in the board meeting held on November 22, 2024. Let us tell you that IFCI is under the Ministry of Finance. What happened now? IFCI was asked to stop giving new loans in 2021-22, as there was a huge increase in NPAs. Due to which the capital to give loans decreased and the company had a shortage of money. News agency Reuters says that the Ministry of Finance and IFCI did not immediately respond to a request for comment.  This reform has been done at a time when it is investing rapidly in infrastructure, which has more than tripled its expenditure for 2024/25 to Rs 11.11 trillion ($131.89 billion) in five years. What will the company do now?  As per the plan, IFCI will not resume lending but will expand the scope of its infrastructure advisory services to include valuation of infrastructure and green projects of state governments. They said the government wants the company to replicate the project advisory practices of SBI Capital Markets, the investment banking firm of State Bank of India, the country's largest lender by assets. The government plans to infuse Rs 500 crore into IFCI this year.