Power Finance Corp, known as the backbone of India’s power sector, registered a stand-alone profit of Rs. 2,110 crores for Apr-Jun 2023. On a consolidated basis, PFC’s profit after tax stood at Rs. 4, 580 crores. In keeping with the strong result, PFC’s board of directors has proposed an Interim Dividend of Rs. 2.25 per share.
For the quarter ending June 30th, PFC has depicted a healthy capital adequacy ratio of 24.33%, with Tier I capital of 20.95% and Tier II capital of 3.38%. further, given the sustained focus on resolution efforts, PFC’s standalone Net Non-Performing Assets level has dropped below 2%, which is the lowest in 5 years. For the period under review, PFC’s net NPA ratio stood at 1.73%, as against 2% a year ago. In Apr-Jun, the consolidated net NPA ratio dropped 23 basis points to 1.57%, owing to the resolution of stressed assets.
In terms of business updates, PFC has sanctioned Rs. 33,079 crores to distribution companies, under the Government’s “Late Payment Surcharge and Related Matters Rules 2022” for clearing of outstanding dues. The funding will be backed by the State Govt. Guarantee and will help alleviate the stress across the power sector value chain.
Separately, the PFC Board today accorded approval for the creation of a Power Asset Management Company (PAMC) for taking over the stressed/NPA power assets, subject to further approval from the Ministry of Power and other authorities. PAMC will be an equal share Joint Venture between PFC and Rural Electrification Corp, and will be a professional organization with the expertise to acquire stressed power assets, operate, maintain and to complete them wherever required.
Further, the Ministry of Power, in collaboration with PFC, launched a digital dashboard Urja DRISHTI (Discom Rating for Integrated Solvency, Health and Transparency Improvement), accessible at www.urjadrishti.com. The platform will publish key sector insights for Discoms in the public domain. This will enable stakeholders to view key performance metrics and comparisons between Discoms.