PFC profit dips to 18 at Rs 1,106 cr

The company today held its board meeting here after which results were announced.

8220;We have to consider extraordinary items like foreign exchange loss which you all know that due to dollar-rupee rate fluctuation in September was around 10 per cent,8221; PFC8217;s CMD Satnam Singh said.

8220;The gross effect of that is Rs 540 crore and net effect of it has been Rs 434 crore,if that is taken into account our profit is showing a dip of 40 per cent,which is notional,8221; Singh said.

PFC has crossed total business-loan assets plus borrowings from market-of 2 lakh crore by 30th September,2011,he said.

8220;Our net loan assets have increased by 26 per cent,last year by the second quarter end. The loan assets stood at Rs 87,900 crore last year and now they are at Rs 1,10,000 crore,8221; Singh said.

8220;Our outstanding sanctions stand at 1,79,000 crore,which is a fairly good indication of how we are going to grow because our yearly disbursements are of the order of Rs 35,000 crore or so,8221; he said.

The company8217;s total income increased by 22 per cent at Rs 6,069 crore for the half year ended September 30 as against Rs 4,956 crore in the same period last fiscal.

8220;The net interest income NII increased by 20 per cent,8221; Singh said.

8220;Our yield,that is average lending rate of interest has gone up from 11.08 per cent to 11.19 per cent,8221; Singh said.

8220;The cost of funds has gone up from 8.54 per cent to 8.93 per cent,8221; he said.

Our net NPA8217;s as a percentage of loan assets stood at .19 per cent,Singh said.

The company8217;s networth is up by 36 per cent from Rs 13,696 crore to Rs 18,645 crore for the half year ended September 30,he said.

8220;The short term lending for power projects which has been an area of concern,there also certain specific milestone have been identified based on which short term lending shall restart,8221; Singh said.

8220;Ministry and we are developing a common grading mechanism for lending to the dis-coms in future that shall be followed by both PFC,REC and all the banks,8221; he said.

8220;The Prime Minister Office had constituted a Shunglu Committee,which is likely to submit its recommendations to deal with issues in power sector like regulatory issues,accounts,or system improvement,by November end,8221; Singh said,who is also a member of the Shunglu Committee.

8220;Ministry had taken up the issue with appellate tribunal to ask the regulatory commissions in the states as to why they are not exercising their powers which is available as per Act to them to su-motto increase the tariff even if the annual revenue recovery is not filed by the states to the regulators,8221; he said.

8220;The losses of dis-coms shall get resolved after all these measures taken come in place,8221; Singh said.

In regards to issue of coal shortage,Singh said that the issue has been raised at the highest level of Prime Minister.

8220;The power projects sanctioned between March 2009 and March 2011 face issue of coal shortages,8221; Singh said.

8220;PFC has taken up the issue of coal shortage with the Union Ministry of Power,and with Coal India Limited,so they have said that projects commissioned by March 2009 do not have any coal related issues,8221;

8220;The projects sanctioned by April 11,two conditions have been stipulated that project should have a fuel supply linkage and PPA8217;s should be there for whatever amount lending has been sought,only then disbursements will take place,8221; he said.