Power Finance Corporation on guard as it chalks out asset resolution plan

The Supreme Court on Tuesday directed all cases filed against the Reserve Bank of India's February 12 circular to itself

Power Finance Corporation (PFC) is looking at resolution of almost half of its total exposure to the power assets (10 out of a total of 23 projects), “hopefully” before November. Along with this, nine projects have already been submitted to the insolvency courts. The key sector lender, however, would be “cautious” of lending to private companies from now on, according to the management.

With an exposure of Rs 255 billion across 23 power projects, the lender is preparing for a haircut of 54 per cent. “There will be no further provisioning towards stressed assets after the current round of resolution,” a