Report card: PFC reports all-time high profit of Rs 8,444 cr in FY21

By: |
June 16, 2021 8:12 AM

The company’s board on Tuesday approved a dividend of Rs 2 per equity share of face value of Rs 10 each for FY21.

The promised grants under the scheme would get converted into loans, unless they met the parameters aimed at reducing their sticky losses, Union power minister RK Singh had earlier told FE.The promised grants under the scheme would get converted into loans, unless they met the parameters aimed at reducing their sticky losses, Union power minister RK Singh had earlier told FE.

State-owned Power Finance Corporation (PFC) has reported a net profit of Rs 8,444 crore for the fiscal ended March 2021 on a standalone basis, recording a 49% year-on-year rise from the year-ago period on the back of higher interest income and and lower cost of funds. This is the highest annual profit ever recorded by the company. In Q4FY21, PFC’s profit increased 62% to Rs 2,327 crore.

The company’s board on Tuesday approved a dividend of Rs 2 per equity share of face value of Rs 10 each for FY21. PFC’s net interest income increased 28% annually to Rs 12,951 crore in FY21. Crossing the Rs 50,000-crore mark, PFC’s net worth for FY21 is up 16% to Rs 52,393 crore. The current gross NPA ratio has also come down to 5.7% against 8.1% in FY20. The net interest spread rose by 27 bps annually to 3.1% at FY21 end as yield on assets fell 5 basis points to 10.6% while its cost of funds fell by a sharper 31 basis points to 7.5%. Loan assets at the end of the fiscal increased 7.5% y-o-y to Rs 3.71 lakh crore as disbursements went up 29.9% by Rs 88,301 crore.

The lender’s 16 power projects with an exposure of Rs 15,820 crore are in the NCLT. The company’s board, in January, had approved to raise its FY21 market borrowing limit to Rs 1.18 lakh crore from the earlier limit of Rs 90,000 crore as it prepared to disburse over Rs 60,000 crore to state-run power discoms to help them clear the dues of power generators under the liquidity infusion scheme.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1MSME Secretary calls for evaluating damage due to Covid, govt’s response for safeguarding MSMEs
2IFC lends USD 250 mn to HDFC to promote affordable green housing finance
3Companies struggling to manage reporting on climate risks, says report