Power Finance Corporation's FY21 net profit zooms 49% to a record Rs8,444 cr
17 June 2021
Power Finance Corporation (PFC), a non-banking financial firm under the ministry of power, has reported a 49 per cent increase in its stand-alone net (after-tax) profit for fiscal 2020-21 to a record Rs8,444 crore.
PFC had reported a net profit of Rs5,655 crore in the previous financial year 2019-20.
Net interest income of PFC increased by 28 per cent to Rs12,951 crore in FY’21 from Rs10,097 cr in the previous financial year.
PFC also declared a final dividend of Rs2 per share, taking the total dividend for FY 21 to Rs10 per share, ie, 100 per cent.
Aided by profit growth, PFC’s net worth for FY21 is up 16 pr cent to Rs52,393 crore,crossing the 50,000-mark.
PFC also reported a 238 bps reduction in its non-performing assets, which took the current gross NPA to 5.70 per cent, down from 8.08 per cent in FY’20.
Net NPA levels reached the lowest in the past 4 years while net NPA ratio saw a sharp reduction of 171 bps to 2.09 per cent in FY’21 from 3.80 per cent in FY’20.
PFC’s capital adequacy ratio also improved sequentially to 18.83 per cent as of 31 March 2021 and now stands at a comfortable level with sufficient cushion over and above the prescribed regulatory limits.
PFC’s consolidated after-tax profit spurted 66 per cent increase in consolidated Profit to Rs15,716 crore for FY’21 from Rs9,477crore for FY’20.
Loan book grew 12 per cent to Rs7,45,189 crore for FY 21 against Rs6,67,330 crore in FY’20.
Consolidated net NPA ratio declined to 1.91 per cent in FY’21 from 3.57 per cent in FY’20 due to resolution of stressed assets while consolidated gross NPA ratio decilned to 5.29 per cent in FY’21 from 7.36 per cent in FY’20.
The government extended liquidity support to discoms under the Aatma Nirbhar Bharat Abhiyaan, PFC and its subsidiary REC combined together, have so far sanctioned Rs.1,34,782 crore and disbursed Rs78,855 crore.