Power Finance Corporation net profit up 27% to Rs 6,628 cr in Sep qtr

State-owned Power Finance Corporation (PFC) on Wednesday posted a nearly 27 per cent rise in its consolidated net profit to Rs 6,628.17 crore in the July-September quarter compared to a year ago.

The consolidated net profit of the company was Rs 5,229.33 crore in the quarter ended on September 30, 2022, a BSE filing showed.

Total income rose to Rs 22,403.69 crore in the quarter from Rs 19,344.39 crore in the same period a year ago.

PFC Chairman and Managing Director Parminder Chopra said, "We have delivered another successful quarter for FY 2024 with a 28 per cent increase in profit vis--vis Q2'23, reflecting our inherent strengths.

"In this quarter, our Board has declared an interim dividend of Rs 4.50 per share," she stated.

Till 30th September 2023, the PFC has sanctioned Rs 70,499 crore and disbursed Rs 31,508 crore under Late Payment Surcharge Scheme.

Consolidated Loan Asset Book crossed Rs 9 lakh crore mark and stood at Rs 9,23,724 crore as of September 30, 2023, versus Rs 7,71,119 crores as of September 30, 2022, registering an increase of 20 per cent.

Owing to continuous and active resolution efforts, consolidated net NPA (bad loans) reached below 1 per cent and is at 0.98 per cent in April-September 2023 from 1.27 per cent in April-September 2022.

Gross NPA (bad loans) also declined significantly by 98 basis points from 4.38 per cent in H1'23 to 3.40 per cent in H1'24, it stated.

PFC Group is the nodal agency for implementation of Late Payment Surcharge Rules.

With the implementation of these rules, there has been more than 50 per cent reduction in the legacy dues which were payable by discoms to the generation companies.

On a standalone basis, it recorded a 2.5 times jump in disbursements (of loans)- from Rs 21,790 crore in H1'23 to Rs 55,562 crore in H1'24.

A substantial uptick in disbursements is driven by lending on the distribution front and towards renewable energy projects, it explained.