PFC Leads Renewable Energy Lending with 25% Growth, Surpassing Rs. 60,000 Crores in FY 2023-24

Power Finance Corporation (PFC) unveiled its financial results for the fiscal year 2023-24, showcasing unprecedented growth and profitability at an event held in Mumbai.

Consolidated Financial Performance

PFC Group achieved its highest-ever annual Profit After Tax (PAT), marking a 25% increase from Rs. 21,179 crores in FY 2022-23 to Rs. 26,461 crores in FY 2023-24. The group maintains its status as India’s largest Non-Banking Financial Company (NBFC) with a balance sheet size exceeding Rs. 10 lakh crore, currently standing at Rs. 10.39 lakh crores. The loan asset book saw a 16% rise, reaching Rs. 9,90,824 crores from Rs. 8,57,500 crores the previous year. The consolidated net worth, including non-controlling interests, grew by 20% to Rs. 1,34,289 crores. Additionally, the consolidated Gross Non-Performing Assets (NPA) ratio improved to 3.02%, and Net NPA reached its lowest level at 0.85%.

Standalone Financial Highlights

PFC also emerged as the highest profit-making NBFC in India on a standalone basis, with a 24% increase in PAT, from Rs. 11,605 crores to Rs. 14,367 crores. The quarterly PAT for Q4 2024 rose by 18% to Rs. 4,135 crores. A final dividend of Rs. 2.50 per share was proposed, bringing the total dividend for FY 2024 to Rs. 13.50 per share. The loan asset book saw a 14% growth, reaching Rs. 4,81,462 crores. The renewable loan portfolio experienced a 25% annual growth, exceeding Rs. 60,000 crores, solidifying PFC’s leadership in renewable energy lending. PFC’s capital adequacy remained robust, with a Capital to Risk (Weighted) Assets Ratio (CRAR) of 25.41% and Tier 1 capital at 23.18%. The net worth increased by 16% to Rs. 79,203 crores. The Net NPA ratio hit a six-year low of 0.85%, with no new NPAs reported in over a year, and the Gross NPA ratio decreased to 3.34%.

Management Remarks

Chairperson and Managing Director Smt. Parminder Chopra highlighted PFC’s continued dominance as India’s largest and most profitable NBFC. The record profits are attributed to a 14% growth in the loan portfolio and improved asset quality. Chopra emphasized the company’s commitment to maximizing shareholder value, with a substantial dividend proposed for FY 2024. She also noted PFC’s leadership in India’s clean energy sector, with significant growth in its renewable loan portfolio. Looking forward, PFC aims to be a key player in India’s power and infrastructure development.