India’s PFC Ends FY 2019-20 With Loan Sanctions Of INR 1 Lakh Crore Plus

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Power Finance Corporation (PFC), India’s leading Non-Banking Financial Company( NBFC) in the power sector and a Central PSU under the Ministry of Power, ended the financial year 2019-20 on a strong note despite numerous challenges including the outbreak of COVID 19.

The lending institution delivered a sound financial performance with loan sanctions of more than Rs 1 lakh crore along with Loan Disbursements of about Rs 68,000 Crore in the last financial year. 

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 sizable disbursement.

During the year, PFC also registered 16% growth in its standalone revenue while it managed 16bps reduction in the cost of funds. The net NPAs of the company reduced to 3.8% from 4.55%, showcasing the robust performance of the lender. Further, the Company registered a 10% growth in its Loan Assets, 16% bps reduction in the cost of funds, and a 16bps increase in Interest Spread. Further, during the fiscal, PFC resolved two stressed projects – RattanIndia Amravati & GMR Chhattisgarh worth Rs 2,700 Crore.

In spite of the challenging environment, YOY Net Profit is comparable at Rs. 6788 Crore for FY20 as against Rs.6953 Crore of FY19 excluding one-time impact of DTA due to change in the corporate tax rate. Profit has also been impacted due to an extraordinary exchange rate variation of 6% in the last 45 days of FY20.

Financial highlights of FY 2019-20 on a Consolidated basis include:

15% Revenue Growth

12% Loan Asset Growth,

Net NPAs reduced to 3.57% from 4.20%

In May, The Prime Minister recently reviewed the work of the Ministry of Power and Ministry of New and Renewable Energy, last evening. Policy initiatives including revised Tariff Policy and the Electricity (Amendment) Bill 2020 to redress the problems afflicting the power sector were discussed.

He advised the Ministry of Power to ensure that the DISCOMs publish their performance parameters periodically so that the people know how their DISCOMs fare in comparison to their peers. He also emphasized that equipment usages in the power sector be made in India.

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