PFC Q4 net rises 58% on interest rate cut

Written by fe Bureau | New Delhi | Updated: May 31 2013, 06:51am hrs
Power sector lender Power Finance Corporations net profit increased 58% to R1,294 crore in the January-March 2013 quarter, helped by reduction in policy interest rates by the Reserve Bank of India.

PFCs spread, which reflects profitability, increased by 66 basis points to 2.99% during the period. The companys net interest income went up to R1,726 crore from R1,229 crore during the same quarter a year ago, registering 40% growth.

Softening of interest rates by the RBI is a good indicator, PFC chairman Satnam Singh said. For the full 2012-13 fiscal, PFCs profit after tax ( PAT) increased 46% to R4,420 crore. Its net interest income increased to R6,272 crore from R4,395 crore in the preceding year.

The company sanctioned R75,147 crore loans while its disbursements aggregated to R45,151 crore. The companys loan assets increased 23% to R1.6 lakh crore.

PFC plans to launch a $1-billion fund to provide equity financing to power projects. It has already bagged RBIs approval and now waiting for the power ministrys signal. Tata Capital is PFCs partner for the equity fund venture.