PFC Aims To Recover Nearly A Third Of Its Stressed Assets In Three Months
Power Finance Corporation Ltd. expects to resolve 20-30 percent of the stressed projects in the next three months, according to its Chairman and Managing Director Rajeev Sharma.
“Also, the acquisition [of Rural Electrification Corporation Ltd.] will be closed by March 31 and it is in total synergy,” Sharma told BloombergQuint, adding Power Finance Corporation Ltd. will also be the promoter in the acquired entity. “There will be a synchronous approach for most of the stressed assets post-merger as we are consortium partners in most cases.”
Both PFC and REC are publicly-listed “Navratna” companies under the Ministry of Power. While REC provides financial assistance for power generation, transmission and distribution, PFC is one of India’s largest non-banking financial firms with a focus on power infrastructure.
The buyout may hurt PFC’s finances as it may have to raise debt to fund the deal, in which case higher interest costs may eat into the state-run lender’s profit.
Key Highlights: (Q3, YoY)
- Net profit rose 71 percent to Rs 2,075.84 crore.
- Net Interest Income rose 27 percent to Rs 2,451 crore.
Watch the full interview here: