{"id":389621,"date":"2020-12-15T11:34:48","date_gmt":"2020-12-15T06:04:48","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=389621"},"modified":"2020-12-15T11:34:48","modified_gmt":"2020-12-15T06:04:48","slug":"power-finance-corporation-rating-buy-new-dividend-norms-to-offer-structural-boost","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/power-finance-corporation-rating-buy-new-dividend-norms-to-offer-structural-boost\/","title":{"rendered":"Power Finance Corporation Rating: buy New dividend norms to offer structural boost"},"content":{"rendered":"<p>RBI\u2019s draft circular on dividend declaration by NBFCs links eligibility and quantum of dividend distribution to net NPA, CRAR and leverage. For PFC, categorised as NBFC-ND-SI, based on its past three years\u2019 CRAR and current net NPA print, the criteria matrix (as per draft circular) makes it eligible for dividend payout of up to 25% of earnings (vs its current policy of 30% of earnings or 5% of net worth, whichever is higher).<\/p>\n<p>However, eligibility criteria are expected to accelerate structural improvement of PFC\u2019s balance sheet for it to pay out higher dividends (shore up CRAR to &gt;18% and contain net NPA to sustain at 10%, steady-state RoE profile of &gt;14% and anticipated stress resolution, we maintain Buy on the stock.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RBI\u2019s draft circular on dividend declaration by NBFCs links eligibility and quantum of dividend distribution to net NPA, CRAR and leverage. For PFC, categorised as NBFC-ND-SI, based on its past three years\u2019 CRAR and current net NPA print, the criteria matrix (as per draft circular) makes it eligible for dividend payout of up to 25% of earnings (vs its current policy of 30% of earnings or 5% of net worth, whichever is higher). However, eligibility criteria are expected to accelerate structural improvement of PFC\u2019s balance sheet for it to pay out higher dividends (shore up CRAR to &gt;18% and contain [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-389621","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/389621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=389621"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/389621\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=389621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=389621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=389621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}