Power Finance Corporation, which has secured in principle approval for acquisition of government stake in Rural Electrification Corporation, says it has improved its capital adequacy from 17.71 per cent in the beginning of the financial year to 19 per cent by the end of the third quarter and hopes to maintain the regulatory requirement of 15 per cent even after the acquisition. In a conversation with M C Vaijayanthi in Mumbai, Rajeev Sharma, CMD, PFC says the company is trying to bring down the risk weighted asset proportion as well as planning to raise subordinated debt for Tier-II capital. Excerpts:
