PFC's Strategic Moves Amidst Financial Shifts

Power Finance Corporation (PFC) reported a 3% increase in March quarter net profit, despite challenges like rupee depreciation and prepayments. The Chairman highlighted RBI's draft norms and discussed a merger with REC. The company plans significant borrowings and aims for 10% loan growth amid geopolitical uncertainties.

The state-run lender, Power Finance Corporation (PFC), saw a 3% rise in its consolidated net profit for the March quarter, reaching Rs 8,598 crore, despite facing setbacks due to prepayments and rupee depreciation.

PFC's Chairman, Parminder Chopra, raised concerns regarding the Reserve Bank of India's draft norms which propose reducing the single group exposure to 35% from the current 50%, affecting a few groups more than others. Commenting on the proposed merger of PFC with REC, Chopra described it as a move that would create a financial entity of significant scale.

Despite a fall in core net interest income, the company remains optimistic about a 10% loan book growth in FY27. Chopra mentioned plans to borrow Rs 1.6 lakh crore in FY27 and sees strong demand in sectors like power distribution and infrastructure.