Non-banking finance company Power Finance Corporation reports 49% increase in net profit in FY21

State-owned non-bank financial corporation Power finance company (PFC) recorded the highest ever net profit of ₹8,444 crore for the 2020-21 financial year, a jump of 49% from the previous year.

In the financial year 2020, the PFC had reported a net profit of ₹5,655 crore on a stand-alone basis.

The company’s consolidated net profit also increased by 66% in FY21 to ₹15,716 crore from ₹9,477 crore reported in FY20.

During 2020-2021, the power sector lender increased its net interest income to ₹12,951 crore on a compassionate basis from ₹10,097 crore reported in FY20.

The company declared a dividend of ₹2 per share, bringing its total dividend payout in FY21 to ₹10 per share, or 100%.

Helped by profit growth, PFC’s FY21 net worth also increased by 16% to ₹52,393 crore.

Unlike commercial banks, PFC crude postal code ratio saw a sharp reduction of 238 basis points compared to FY20. Current GPA ratio is 5.70% compared to 8.08% in FY20

Postal code net The ratio also saw a sharp reduction of 171 basis points from FY20. The current net NPA ratio is 2.09% compared to 3.80% in fiscal 2020.

The lender said 25% of its “stressed book” was resolved in FY21.

The company’s capital adequacy ratio also improved sequentially to 18.83% as of March 31, 2021. Capital adequacy is at a comfortable level with sufficient cushion beyond prescribed regulatory limits.

As part of the liquidity support for Aatma Nirbhar Discoms announced by the government, PFC and its subsidiary RECcombined have so far sanctioned ₹1,34,782 crore and paid out ₹78,855 crore.

“I am extremely pleased with our FY21 results despite the many headwinds encountered during the year. The impressive performance in FY21, as evidenced by the highest profit ever, underscores the inherent strengths of PFC in managing adverse economic events. Also in the future, we are committed to delivering long-term value to our shareholders,” said Chairman and Chief Executive Officer RS ​​Dhillon.

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