Report card: PFC reports all-time high profit of Rs 8,444 cr in FY21
State-owned Power Finance Corporation (PFC) has reported a net profit of Rs 8,444 crore for the fiscal ended March 2021 on a standalone basis, recording a 49% year-on-year rise from the year-ago period on the back of higher interest income and and lower cost of funds. This is the highest annual profit ever recorded by the company. In Q4FY21, PFC’s profit increased 62% to Rs 2,327 crore.
The company’s board on Tuesday approved a dividend of Rs 2 per equity share of face value of Rs 10 each for FY21. PFC’s net interest income increased 28% annually to Rs 12,951 crore in FY21. Crossing the Rs 50,000-crore mark, PFC’s net worth for FY21 is up 16% to Rs 52,393 crore. The current gross NPA ratio has also come down to 5.7% against 8.1% in FY20. The net interest spread rose by 27 bps annually to 3.1% at FY21 end as yield on assets fell 5 basis points to 10.6% while its cost of funds fell by a sharper 31 basis points to 7.5%. Loan assets at the end of the fiscal increased 7.5% y-o-y to Rs 3.71 lakh crore as disbursements went up 29.9% by Rs 88,301 crore.
