Will maintain NPA at 0.45% in Q4: PFC

Public sector power financing company Power Finance Corporation (PFC) expects to maintain its NPA at 0.45% during the fourth quarter, the same level as in the previous quarter despite various issues being faced by power producers, a top company official said today.

"Our NPA (non-performing assets) level is likely to remain at the same level in the current quarter as reported in the third quarter. We don't see any deterioration of asset quality during this period," a top company official told PTI here.

The power finance company had posted an NPA of 0.45% during the October-December period with its absolute NPA shooting up to Rs 600 crore from Rs 200 crore earlier.

The addition was mainly due to loans extended to the Koneseema gas power plant in Andhra Pradesh, promoted by the VBC Group, which turned NPA in the third quarter.

Referring to disbursement target in the current fiscal, the official said the company would be able to meet it.

"Despite the current environment, we would be able to achieve the disbursement target for this fiscal," he said, adding that though some kind of slowdown has been witnessed in case of project finance, projects are still coming for financial closure.

PFC, which had an outstanding sanctions of about Rs 1,82,000 crore by end of the December quarter, has witnessed a 28% growth in loan disbursement in the first nine months of this fiscal.