Companies

PFC consolidated net jumps 72% to Rs 4,290 cr in Sept qtr

PTI New Delhi | Updated on November 12, 2020

Company’s cost of funds has come down in a falling interest rate scenario

State-run Power Finance Corporation (PFC) on Thursday reported a 72 per cent jump in its consolidated net profit at Rs 4,290 crore in the July-September quarter on account of higher revenues.

Its net profit was Rs 2,497 crore in the quarter ended September 30, 2019.

The standalone net profit of the company rose to Rs 2,085.05 crore in the September quarter from Rs 1,157.26 crore in the same period a year ago.

Total income of the company rose to Rs 18,171.41 crore in the said quarter from Rs 15,537.55 crore in the same period a year ago.

Commenting on the results, PFC Chairman and Managing Director R S Dhillon said, “It has been a quarter of stable performance for PFC despite tough economic conditions due to COVID pandemic. We ended the second quarter with 40 per cent growth in interest income while our (standalone) net profit rose by 80 per cent in this period.”

The standalone net profit of the company rose to Rs 2,085.05 crore in the September quarter from Rs 1,157.26 crore in the same period a year ago.

Funding cost and yield

Dhillon further said, “Even though our project based disbursements have been impacted due to COVID, the government’s liquidity package for Discoms enabled us to maintain our growth momentum. A key highlight for this quarter has been PFC’s cost of funds, which has consistently come down in a falling interest rate scenario. At the same time, we have been able to maintain overall yield on our portfolio.”

PFC and its subsidiary REC Ltd together have sanctioned loans worth Rs 1.18 lakh crore under the Rs 1.2 lakh crore liquidity package for discoms announced by the government in May this year.

Further, he said that with resolution of stressed assets, consolidated net NPA (bad loan) ratio has fallen 129 basis points to 2.60 pe cent as on September 30 from a year ago.

Published on November 12, 2020

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