Power Finance Corporation(PFC) reports the highest profit for FY21
(PFC) Power Finance Corporation which is state-owned, has announced a net profit of Rs 8,444 crore for the fiscal ended March 2021, recording a 49% rise from the year-ago period with the support of higher interest income and lower cost of funds. It is the highest annual profit ever recorded by the company. In Q4FY21, Power Finance Corporation PFC’s profit has increased by 62% to Rs2,327 crore.
On Tuesday, PFC’s board of directors sanctioned a dividend of Rs 2 per equity share of the face value of Rs 10 each for FY21. PFC’s net interest income has increased by 28% annually to Rs 12,951 crore in FY21. The Rs 50,000-crore mark, which was set earlier, has been crossed by PFC, reaching a new high net worth of Rs 52,393 crore is up by 16% in FY21.
The current overall NPA ratio has also come down to 5.7% against 8.1% in FY20. The net interest spread jumped up by 27 bps annually to 3.1% at FY21 end as the yield on assets fell five basis points to 10.6% while its cost of funds fell by 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 the disbursements went up to Rs 88,301 crore (29.9%).
Power Finance Corporation’s 16 power projects with an exposure of Rs 15,820 crore are in the NCLT. The company’s board, in January, had accepted to raise its FY21 market borrowing limit to Rs 1.18 lakh crore, surpassing 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.