PFC posts Rs 3.4k cr net loss in January-March quarter

State-run Power Finance Corp (PFC) today reported a standalone net loss of Rs 3,409.49 crore in the quarter ended on March 31, 2017, due to lower interest income and provisions for bad loans.
The company had posted a net profit of Rs 1,259.65 crore in the corresponding quarter of previous fiscal, PFC said in a BSE filing.
Apart from approving the financial results of the company, the board of directors in its meeting held today also decided not to recommend any final dividend for 2016-17 to be declared by the shareholders in the Annual General Meeting for last fiscal.
According to statement, the company's total standalone income was down at Rs 5,797.04 crore in the fourth quarter from Rs 6,786.99 crore year ago.

The interest income also came down to Rs 5,513.77 crore in fourth quarter from Rs 6,608.14 crore in the quarter ended on March 31, 2016.
Under the credit concentration norms, the company has classified standard assets amounting to Rs 35,994.70 crore as restructured standard assets. The provision on such loans has been increased from 0.35 per cent to 4.25 per cent. Thus, its profit before tax for the quarter and year ended on March 31, 2017 decreased by Rs 1,403.79 crore.

The company has also stated that its profit before tax has also reduced by Rs 963.16 crore due to the provisions for two non-performing assets of Rs 8,284.47 crore.

The profit before tax also decreased by Rs 1,083.38 crore due to provisions for bad loans of over Rs 5,000 crore. All these provision decreased profit before tax by Rs 3,954.55 crore in the quarter and year ended on March 31, 2017.
The company's standalone net profit for 2016-17 was down at Rs 2,126.39 crore from Rs 6,113.39 in 2015-16.
The PFC's consolidated net profit was also down at Rs 2,236.10 crore in 2016-17 from Rs 6,184 crore in 2015-16.