Power Finance Corporation logs highest ever net profit of Rs 8,444 cr for FY 21

New Delhi, 15th June, 2021: State-owned non-banking financial firm Power Finance Corporation (PFC) recorded the  highest ever net profit of 8,444 cr for Financial Year 2021, an increase of  49% on Year-on-Year basis. The Navaratna PSU  registered a robust 28% increase in Net Interest Income  in FY’21 – Net Interest Income stood at Rs. 12,951 cr. for FY’21 versus Rs.10,097 cr. in FY ’20.

A Dividend of Rs.2 was declared per share. Thus, in FY 21, PFC has given a total dividend of Rs. 10 per share i.e. 100% says the company. Aided by profit growth, PFC’s net worth for FY 21 is up by 16% to Rs.52,393 cr.  crossing the fifty thousand mark. The company has resolved 25%  on Stressed Book  with  Gross NPA ratio having  a sharp reduction of 238 bps from FY’20. The current GNPA ratio is at 5.70% against 8.08% inFY’20.

The current Net NPA ratio is at 2.09% against 3.80% in FY’20. The Capital Adequacy Ratio of the Company has also improved sequentially to 18.83% as on 31st March 2021. The capital adequacy is at a comfortable level with sufficient cushion over and above the prescribed regulatory limits, says the leading Power sector PSU company,

PFC and its subsidiary REC together have   sanctioned Rs 1,34,782  Crores as Atma Nirbhar liquidity support and disbursed Rs. 78,855 cr. says company release received from CGM (PR) Mr SS Rao.

Mr. R.S. Dhillon, CMD  has   expressed his pleasure with the robust financial results despite many headwinds faced during the year. He appreciated that the impressive performance in FY 21, as inherent strength of PFC in handling  adverse economic events adding,  ” Going forward also, we are committed to deliver long-term value to our shareholders”.

Ms Parminder Chopra, Director (Finance) remarked, ” I am happy  to say that PFC has stayed profitable in each quarter of FY 21despite the Covid-19  pandemic.  Even in an incredibly challenging year, PFC has delivered  remarkable results and remained well capitalized, well provisioned & highly liquid with a strong balance sheet. Given, PFC’s strong fundamentals, we remain optimistic  on delivering  such performance in future also”.