PFC reports 28% increase in consolidated Q1FY22 net profit
16 Aug 2021
Power Finance Corporation Ltd (PFC) has reported an over 28 per cent jump in its consolidated net profit at Rs4,554.98 crore in fiscal first quarter ended 30 June 2021, as revenues increased.
PFC had reported a consolidated net profit of Rs3,557.23 crore in the quarter ended 30 June 2020, as per a BSE filing.
Total income for the April-June 2021 quarter rose to Rs18,973.93 crore from Rs16,932.24 crore in the comparable period a year ago.
Net interest income of the company rose 15 per cent to Rs3,525 crore in Q1 2021-22 from Rs3,073 crore in Q1FY21.
PFC’s loan asset book grew 9.5 per cent to Rs7,49,373 crore in Q1 FY22 from Rs6,84,383 crore in Q1FY21.
PFC’s standalone net profit for fiscal first quarter ended 30 June 2021 stood at Rs2,274 crore, which is 34 per cent increase from the its after-tax profit of Rs1,700 crore for Q1 of the previous fiscal.
PFC’s board of directors at its meeting on Thursday approved an interim dividend at the rate of Rs2.25 per equity share (subject to deduction of TDS) on the face value of the paid-up equity shares of Rs10 each for 2021-22.
Aided by profit growth, PFC’s net worth for Q1FY22 has gone up by 17 per cent to Rs54,739 crore from Rs46,940 crore in Q1FY21.
Capital adequacy ratio of the company has exceeded 20 per cent – to CRAR of 21.16 per cent as on 30 June 2021. The capital adequacy is at a comfortable level with sufficient cushion over and above the prescribed regulatory limits, PFC stated.
With enhanced provisioning coverage on Stage III (NPA) assets of 65 per cent, PFC’s net NPA levels have gone down to the lowest in the past 3 years.
PFC expects to benefit from the Revamped Distribution Sector Scheme with significant business opportunity going forward. With an outlay of Rs3,03,758 crore, PFC along with its subsidiary REC have been designated as nodal agencies for facilitating implementation of the scheme.