PFC Q1 net up 9% at Rs 1,713 crore

State-run Power Finance Corp (PFC) on Tuesday posted a 8.64% rise in standalone net profit at Rs 1,712.55 crore for the quarter ended June 30, on the back of higher interest income.

The company's net profit for the April-June quarter last year was Rs 1,576.21 crore, PFC said in a BSE filing.

Standalone income from operations during the quarter was at Rs 7,105.60 crore, registering an increase of 5.1%.

Interest income in the first quarter increased to Rs 7,072.05 crore from Rs 6,709.32 crore in the year-ago period.

The company said: "The valuation of quoted current investments has been made category wise against the earlier policy of scrip wise valuation. Due to this change in accounting policy, profit before tax for current quarter has increase by Rs 63.65 crore."

It also stated that due to change in the policy of classifying loan asset as loss assets, profit before tax has increase by Rs 283.63 crore.

Till March 31, 100% of the loan assets were treated as non-preforming assets on becoming doubtful for more than three years. Now 50% of these loan assets are treated as NPA.

The company's primary business is to provide finance for power sector.