Power Finance Corporation: Power Finance Corporation has made the highest net profit so far in FY21.
Power Finance Corporation: State-run non-banking financial company Power Finance Corporation (PFC) has recorded the highest ever net profit of Rs 8,444 crore for the financial year 2020-21, which is 49 percent higher than the previous year. In FY20, PFC had reported a net profit of Rs 5,655 crore on a standalone basis.
The company’s consolidated net profit also increased by 66 per cent to Rs 15,716 crore in FY11 from Rs 9,477 crore in FY10.
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During 2020-21, the power sector lender increased its net interest income from Rs 12,951 crore to Rs 10,097 crore in FY20.
The company declared a dividend of Rs 2 per share which takes the total dividend distribution of Rs 10 per share i.e. 100 percent in FY21.
Aided by profit growth, PFC’s net assets also grew 16 per cent to Rs 52,393 crore for FY21.
Unlike commercial banks, PFC’s gross NPA ratio has seen a sharp decline of 238 bps since FY15. The current GNPA ratio is 5.70 per cent as against 8.08 per cent in FY20.
The net NPA ratio also saw a sharp decrease of 171 bps from FY15. The current net NPA ratio is 2.09 per cent as against 3.80 per cent in FY20.
The lender said that 25 per cent of its ‘stressed book’ got resolved in FY21.
The capital adequacy ratio of the company has also increased sequentially to 18.83 per cent as on March 31, 2021. Capital adequacy is at a comfortable level with adequate cushion over and above the prescribed regulatory limits.
Under the Atmanirbhar Discoms Liquidity Support announced by the government, PFC and its subsidiary REC together have so far sanctioned Rs 1,34,782 crore and disbursed Rs 78,855 crore.
Chairman and Managing Director R.S. Dhillon said, “I am extremely happy with my FY21 results despite having faced many adversities during the year. The impressive performance in FY21, as evidenced by the highest ever gains, underscores PFC’s inherent strength in dealing with adverse economic events. Going forward, we are committed to delivering long-term value to our shareholders.”
