PFC eyes foray into banking services

State-run Power Finance Corporation is exploring opportunities for a formal entry into banking services, a senior company official said today.

"We are exploring opportunities to get into banking (services)", Power Finance Corporation Director (Finance) R Nagarajan told reporters here.

The company will be appointing a consultant to study the feasibility of foraying into banking services and would decide on a plan based on the report.

"We are appointing a consultant to suggest whether we can put equity...," he said.

Also, the company is yet to get "clearances" from the Ministry of Power for making equity investments in both private and public sector power projects.

"So far we have not made any equity investments. Currently, we are waiting for the Ministry of Power for its clearance", he added.

Nagarajan and other company officials were here to announce their FPO to raise funds to the tune of Rs 4,700 crore at the upper end of the band and Rs 4,400 crore at the lower end of the price band.

The price band is fixed between Rs 193 and Rs 203 per equity share, he said.

The FPO, which opens tomorrow and close on May 13, comprises fresh issue of 17.21 crore equities.

The government holds about 89% stake in PFC, after divesting 10% through an initial public offering in March 2007.