Q4 results: High NPA recognition, growth visibility boost PFC sentiment

REC, too, reported additional slippages on account of RBI's new NPA framework

Despite deterioration in asset quality in the March 2018 quarter (Q4), shares of Power Finance Corporation (PFC), which were down over 40 per cent in the past one year, surged 6.5 per cent on Monday. The recognition of stressed loan assets has turned investors' sentiment after Q4 results.

Though not mandated, PFC, the power sector lender, also complied with the Reserve Bank of India's (RBI's) new non-performing assets (NPAs or bad loans) framework announced on February 12 for banks. 

This resulted in additional slippages from private loans. Consequently, PFC’s restructured pool reduced sharply to 8.6 per cent of gross advances as of