New Delhi (11.02.2021): PFC  saw an opportunity in the pandemic caused by the Chinese virus and stepped up its efforts to improve its overall financial performance. And this reflects in the public sector company's achievements in 3QFY21 and in the nine months since end-March 2020.

It recorded a 30% increase in Net Interest Income in the quarter ended December 31, 2020, to Rs. 3,442 cr vs Rs.2,646 cr. in the corresponding period of 2019. Similarly, for the nine months period of FY21, the Net Interest Income accelerated 34% to Rs. 9,879 cr. from Rs.7,362 cr.

The company also successfully resolved the issue of stressed assets. This helped decelerate gross NPA (GNPA) by 249 basis points over nine months period to 5.85% Vs 8.34% in 9MFY20. Net NPA ratio also spiraled down 164 bps 2.30% Vs 3.94% in 9MFY20.

Further, Q3’21 Yield is at 10.68% & the Cost of Funds is at 7.48%. Driven by efficiencies in yield and cost of funds, the Net Interest Margin on earning assets for Q3’21 improved 35bps to 3.63% from 3.28% in Q3’20.

This excellent performance made CMD R.S. Dhillon said: "PFC has so far navigated the pandemic well with a high level of resilience. This quarter's results are a testament to this. With the Indian economy getting back on track of recovery, I feel positive about the recovery in the Indian power sector. I believe that PFC is in a strong financial position to leverage on attractive growth opportunities.”

 Echoing the CMD's assessment, Ms. Parminder Chopra, Director (Finance) said: “The third quarter has been remarkable for PFC with quarterly profit reaching an all-time high. Our overall Q3 results reflect the strong operational strength and solid fundamentals of PFC in a continuing challenging environment.”

There are reasons for Team PFC to feel happy with their achievements. The standalone Quarterly PAT of Rs.2,333 cr is an all-time high Vs Rs.1,680 cr. in Q3 ’20;  Standalone Profit After Tax jumped 39% from Q3’20;  45% jump in Standalone Profit After Tax to Rs.6,117 cr. for 9M’21. Vs Rs.4,220 cr. in 9M ’20.

 The capital adequacy ratio was comfortable at 20.21% having sufficient cushion over & above the prescribed regulatory limits

 The consolidated PAT was Rs. 3,963 cr. for Q3’21 vs. Rs.3,387 cr. for Q3’20 recording a handsome rise of 17%.

 The company recorded a 16% increase in Consolidated Revenue from Operations - Consolidated Revenues at Rs. 18,435 cr. for Q3’21. Vs.15,873 cr. for Q3’20; reduction in consolidated net NPA ratio from 3.56% in Q3’20 to 2.12% in Q3’21 due to resolution of stressed assets; and deceleration in consolidated Gross  NPA ratio from 7.41% in Q3’20 to 5.48% in Q3’21 due to resolution of stressed assets.

 The company continued its liquidity support to Discoms under Aatma Nirbhar Bharat Abhiyaan. Together with GoI and its subsidiary, PFC sanctioned Rs.1,35,497 cr. and disbursed Rs.46,074 cr to create Aatma Nirbhar Discoms. 

(Rakesh Ranjan)