By the year 2004, the Industrial Finance Corporation of the India ("IFCI") is encountering an impending collapse; its profitability has reached negative point.Non-performing assets ("NPAs") have reached their pinnacle, and also the company doesn't have the money to conduct business. It starts selling off and renting its assumptions out to get cash to sustain its operations, going door to door to save itself. Employee morale is at its lowest amount. IFCI's operations are no longer workable and become unsustainable. The government along with IFCI opt to restructure IFCI after assessing all possible choices.
IFCI's turnaround, which catapults it on the path to increase comprises multiple variables for example converting debt into equity, creating provisions for bad loans, restructuring liabilities, retiring high-cost debt, managing NPAs vigorously, voluntarily retiring staff, focusing on short-term projects, adopting a particular approach in identifying projects for assistance and observation projects more efficiently. The most crucial factor that allows the turn-around of the state financial institution is the competent leadership that not only changes IFCI's public sector culture but also brings a fresh work culture and ethics to the business. ICFI's turnaround from the financial crisis inspires a lasting motivation in the centers of its own employees.
PUBLICATION DATE: June 30, 2014 PRODUCT #: HK1041-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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