IFCI had registered a net profit of Rs. 150 crore in the corresponding quarter of 2012-13.
The financial institution also said it has decided to partially sell its stake in the National Stock Exchange (NSE).
At present, the state-owned infrastructure lender holds a 5.44 per cent stake in the premier bourse.
The board has given the in-principle approval for sale of 2.5 per cent stake in NSE, IFCI managing director Malay Mukherjee said.
The country's oldest financial institution initially held a 12.44 per cent stake in the Mumbai-based stock exchange, but sold 7 per cent of it to Goldman Sachs Group Inc, NYSE Group Inc, General Atlantic LLC and Softbank Asian Infrastructure Fund in 2007.
In December, 2012, the financial institution had become a state-owned entity with government getting a 55.53 per cent stake by conversion of optionally convertible bonds.
The rise is on account of a decline in cost of funds and reduction in operational expenses, Mr Mukherjee said.
Its total income in the period under review increased to Rs. 830 crore, from Rs. 735.38 crore in the year-ago period. The gross non-performing assets declined to 17.3 per cent from 22.2 per cent at the end of March, 2013.
Net NPAs, however, rose to 11.4 per cent from 10.2 per cent.
Net interest margin (NIM) improved to 2.4 per cent from 2.2 per cent.
During the financial year ended March, 2013, the company's net profit rose 13 per cent to Rs. 508 crore as against Rs. 451 crore in the corresponding period of the previous fiscal year (2012-13).
Total income rose to Rs. 2,951.26 crore during the year from Rs.2,759.3 crore the previous year.
The board has recommended 10 per cent dividend or Re 1 per equity share for 2013-2014.
Talking about the current fiscal year, Mr Mukherjee said the company expects its net profit to rise to Rs. 750 crore.
Of this, Rs. 200 crore is expected to come from treasury income, he added.
Bad assets are expected to come down by 2 per cent from the existing level by end of March, 2015.