State-owned Power Finance Corporation (PFC) has reported a net profit of Rs 2,075.8 crore for the quarter ended December 2018 on a standalone basis, recording a year-on-year (y-o-y) rise of 70.6% from the year-ago period on the back of higher interest income and gains from foreign currency fluctuations. The company\u2019s board on Monday approved to raise its FY19 market borrowing limit to Rs 97,000 crore. In the beginning of the fiscal, the limit was set at Rs 57,000 crore. The limit under long-term rupee-denominated borrowing for FY19 has been increased to Rs 67,000 crore from Rs 20,750 crore fixed earlier. The borrowing limit has been raised as the power sector lender prepares itself to acquire the Centre\u2019s 52.63% stake in Rural Electrification Corporation (REC). As FE recently reported, PFC is likely to Rs 10,000 crore from its \u2018reserves and surplus\u2019 to carry out the Rs 14,000-crore purchase. PFC\u2019s revenue in the quarter increased 17.9% y-o-y\u00a0Rs 7,362.3 crore as income from interest, the company\u2019s main source of earnings, went up 16.9% Rs 7,241.1 crore. Net gains from transaction exchanges went up by more than 28 times Rs 347.2 crore. The company\u2019s loan assets at the end of the quarter increased 13.7% y-o-y\u00a0Rs 2.98 lakh crore as disbursements went up 32.6% Rs 15,818 crore. PFC\u2019s capital adequacy ratio now stands at 18.9%, up 104 basis points from the preceding quarter. Read Also| NTPC threatens to cut power supply to Jammu and Kashmir over dues of Rs 2,000 crore The lender\u2019s cost of fund has come down by 11 basis points (sequentially) at the end of the third quarter of FY19 to 7.97% as it now has access to low cost funds like 54EC bonds (coupon rate of 5.75% per annum). Foreign borrowings comprised 12% of the mix at the end of December 2018 against 6% a year ago. The lender\u2019s 16 power projects with an exposure of Rs 23,607 crore are in the NCLT. Among these, 60% provisioning has been made for four projects of Rs 1,895 crore, 51% for ten projects worth Rs 20,077 crore and 93% provisioning is available against two assets of Rs 1,635 crore.