Power Finance Corporation shows a 28% jump in net profits at Rs 4,554 crore in June quarter

State-run Power Finance Corporation (PFC) posted over 28 per cent jump in its consolidated net profit at Rs 4,554.98 crore in the June 2021 quarter, mainly due to higher revenues. Its consolidated net profit was Rs 3,557.23 crore in the quarter ended June 30, 2020, a BSE filing said.Total income in the quarter under review rose to Rs 18,973.93 crore from Rs 16,932.24 crore in the same period a year ago.

The PFC board has also approved interim dividend at the rate of Rs 2.25 per equity share (subject to deduction of TDS) on the face value of the paid-up equity shares of Rs 10 each for 2021-22.

The capital adequacy ratio of the company was 21.16 per cent as on June 30, 2021. The capital adequacy is at a comfortable level with sufficient cushion over and above the prescribed regulatory limits, it stated.

Revamped Distribution Sector Scheme with an outlay of Rs 3,03,758 crore provides significant business opportunity to the PFC going forward. PFC along with our subsidiary REC have been designated as nodal agencies for facilitating implementation of the Scheme, it stated.

Its loan asset book grows at 9.5 per cent. Loan asset book for Q1FY’22 (April-June 2021) stood at Rs 7,49,373 crore versus Rs 6,84,383 crore in Q1FY’21 (April-June 2020). It witnessed reduction in consolidated net NPA (boad loan) ratio to 1.80 per cent in Q1FY’22 (April-June 2021) from 3.15 per cent in Q1FY’21 (April-June 2020) due to resolution of stressed assets.

Under Aatmanirbhar discoms liquidity support announced by the Government of India, the PFC and its subsidiary REC Ltd combined together have so far sanctioned Rs 1,35,537 crore and disbursed Rs 79,678 crore. PFC Chairman and Managing Director R S Dhillon said in a statement, “We have registered 34 per cent increase in our profits, and our performance this quarter once again showcases the inherent strength of PFC’s strong business. I am also particularly pleased that with our consistence performance, we have been able to provide dividend return to our shareholders in the first quarter itself.”

Leave a Reply

Your email address will not be published. Required fields are marked *