The Business Bytes
TBB BUREAU
NEW DELHI, JUNE 15, 2021
State-owned non-banking finance company Power Finance Corporation (PFC) has recorded the highest-ever net profit of Rs 8,444 crore for financial year 2020-21, a 49 per cent jump over the previous year.
In FY20, the PFC had reported a net profit of Rs 5,655 crore on a standalone basis.
The company’s consolidated net profit also increased by 66 per cent in FY21 to Rs 15,716 crore against Rs 9,477 crore reported in FY20.
During 2020-21, the power sector lender increased its net interest income to Rs 12,951 crore in compassion to Rs 10,097 crore reported in FY 20.
The company declared dividend of Rs 2 per share which takes up its total dividend distribution in FY 21 of Rs 10 per share i.e. 100 per cent.
PFC’s net worth for FY21 also increased by 16 per cent to Rs 52,393 crore.
PFC’s Gross NPA ratio saw a sharp reduction of 238 bps from FY20. The current GNPA ratio is at 5.70 per cent against 8.08 per cent in FY20
Net NPA ratio also saw a sharp reduction of 171 bps from FY20. The current Net NPA ratio is at 2.09 per cent against 3.80 per cent in FY20.
The capital adequacy ratio of the company has also improved sequentially to 18.83 per cent as on March 31, 2021. The capital adequacy is at a comfortable level with sufficient cushion over & above the prescribed regulatory limits.
Commenting on the performance of the company, PFC Chairman & Managing Director R S Dhillon said, “The impressive performance in FY21 as is evident from the highest ever profit, underlines the inherent strengths of PFC in handling adverse economic events. Going forward also, we are committed to deliver long-term value to our shareholders.”
“Even in an incredibly challenging year, PFC has delivered remarkable results &remains well capitalized, well provisioned & highly liquid with a strong balance sheet. Given, PFC’s strong fundamentals, we remain optimistic on delivering such performance in future also,” said Parminder Chopra, Director (Finance).
