Power Finance Corporation’s Profit After Tax is up by 53%
Power Finance Corporation’s Profit After Tax (PAT) is up by 53% from Rs.1,355crore in the second quarter to Rs. 2076crore during the third quarter (October-December) of the current Financial year of 2018-19. The Net Interest Income rose by 12% to reach a figure of Rs.2,435crore as against Rs.2,180crore recorded during the second quarter of the current Financial year. Also, PFC’s Net Interest Margin has been improving over the quarters and is 3.42% for the third quarter. Further, PFC Return on Average Networth for the third quarter is 20.97%, an increase of 8% from the second quarter. Another significant aspect is that PFC’s Capital Adequacy Ratio (CRAR) has improved by more than 1% to about 18.95% from the previous quarter (Q2’19).
On the loan asset front, PFC has registered a loan asset growth of 14% from the corresponding period in the previous financial year. Similarly, disbursements saw an increase of 20%. Also, in terms of Stressed assets, the worst is behind us and we do not see any additional provisioning going forward.
Further, Cabinet Committee on Economic Affairs on 6thDec 2018 has given it’s ‘In Principle’ approval for strategic sale of Government of India’s existing 52.63% equity shareholding in REC Ltd. to PFC along with transfer of management control. The endeavor is to conclude the acquisition deal by 31st March 2019.
