Power Finance Corporation’s Q3 Profit Rises 7% YoY to ₹52.41 Billion

PFC's net NPA ratio declined to its lowest-ever at 1.15% in 9M FY2023


State-owned lender Power Finance Corporation (PFC) posted its highest-ever consolidated quarterly profit of ₹52.41 billion (~$633.5 million) for the third quarter (Q3) of the financial year (FY) 2022-23, an increase of 7% year-over-year (YoY).

The company saw its lowest-ever net non-performing assets (NPAs) ratio due to a decline in stressed assets through the April-December period, contributing to its profit.

PFC’s consolidated net NPA decreased by 71 basis points to 1.15% in 9M of FY 2022-23 from 1.86% YoY.

PFC’s total income for the third quarter stood at ₹196.63 billion (~$2.3 billion), up 2.3% YoY.

During the quarter, the company raised ₹147.43 billion (~$1.7 billion) in non-convertible securities.

9M FY 2022-23

The company’s profit for the initial nine months (9M) of the FY 2022-23 rose by 10.2% YoY to ₹159.5 billion (~$1.81 billion).

PFC’s total income stood at ₹575.51 billion (~$6.95 billion), marginally up from ₹574.69 billion (~$6.94 billion) YoY.

By the end of 9M, PFC’s net worth stood at ₹796.96 billion (~$9.6 billion), up 36.2% YoY.

The consolidated loan disbursements by PFC crossed ₹1,068.7 billion (~$12.9 billion) for 9M of 2023, up 28% YoY. The company said loan disbursement reflected its robust business performance.

On the distribution side, the PFC group has collectively approved ₹1,028.31 billion (~$12.42 billion) and disbursed ₹281.79 billion (~$3.40 billion) under Late Payment Surcharge rules. The company said in a statement that the approved amount would be disbursed in a phased manner through equated monthly installments (EMIs) ranging from 12-48 months.

REC India, the subsidiary of PFC and a government-owned power sector lender, posted the highest-ever quarterly net profit at ₹28.7 billion (~$351.37 million) for Q3, up YoY by 3.8%, primarily driven by improving asset quality and resolution of stressed assets.

In 2021, PFC issued its maiden Euro Green Bond of £300 million (~$353 million) under the U.S. Global Medium Term Note Program. The bonds have a tenor of seven years at a coupon of 1.841%. The Notes are listed on the Singapore Exchange Securities Trading Limited, NSE International Exchange, and India INX.