Saturday, June 25, 2022

PFC sanctions more than Rs 1 lakh crore loan in FY’2019-20

Must read

New Delhi: Power Finance Corporation (PFC), India's leading NBFC in the power sector and a Navratna PSU under Ministry of Power, has ended the financial year 2019-20 (April-March) on a strong note despite numerous challenges including the Coronavirus (COVID-19) outbreak.

A press release issued from the Ministry of Power on Thursday said that the PFC has delivered a sound financial performance with loan sanctions of more than Rs 1 lakh crore along with the loan disbursements of about Rs 68,000 crore in the last financial year (FY'2019-20). The highlight of the year was the disbursement of Rs 11,000 crore in the last week of March 2020 despite the nationwide lockdown to contain the spread of COVID 19. Backed by strong IT infrastructure, PFC managed this feat of sizeable disbursement even though the employees were working from home.

During the year, PFC also registered 16 percent growth in its standalone revenue while it managed 16bps reduction in the cost of funds. The net NPAs (Non-Performing Assets) of the company reduced to 3.8 percent from 4.55 percent, showcasing the robust performance of the lender. Further, the company registered a 10 percent growth in its loan assets, 16 percent bps reduction in the cost of funds, and 16bps increase in Interest Spread. During the fiscal, PFC resolved two stressed projects – Rattan India Amrawati and GMR Chhattisgarh worth Rs 2,700 crore.

In spite of challenging environment, year-over-year (YOY) net profit is comparable at Rs 6,788 crore for FY'2020 as against Rs.6,953 crore of FY'2019 excluding one-time impact of DTA due to change in the corporate tax rate. Profit has also been impacted due to the extraordinary exchange rate variation of 6 percent in the last 45 days of FY20.

Financial highlights of FY 2019-20 (consolidated basis) include; 15 percent revenue growth, 12 percent loan asset growth, net NPAs reduced to 3.57 percent from 4.20 percent.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

- Advertisement -

More articles

- Advertisement -

Latest News