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Time of India
21-05-2025
- Business
- Time of India
PFC Q4 net profit rises 11%, makes 100% provisions on Gensol Engineering
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Power Finance Corp (PFC) reported an 11% increase in the fourth-quarter net profit at Rs 8,358 crore, buttressed by an increase in interest income and provisioning the same quarter a year ago, the company had reported a net profit of Rs 7,556 board at the state-run infrastructure lender recommended a final dividend of Rs 2.05 per share for FY25, taking the total dividend to Rs 15.80 per interest income, or the different between interest earned and expended, rose 38% to Rs 12,092 crore in the March quarter from Rs 8,739 crore a year the quarter, the company saw gains from resolution of KSK Mahanadi, a 3,600 MW thermal generation project with outstanding of Rs 3,300 crore, with overa 100% recovery. The company recovered Rs 4,500 crore in this account including interest. With this, gross NPA fell to 1.94% from 3.34% and Net NPA ratio declined to 0.39% in FY25 from 0.85% in company reported its highest-ever annual profit after tax at Rs 17,352 crore in FY25, rising from Rs 14,367 crore a year forward, the company expects resolutions in two NCLT cases- Sinnar Thermal and India Power Haldia- and for Shiga and TRN Energy outside the downside, fresh provisions of Rs 1,000 crore were made due to the re-ranking of DISCOMs under the 13th Integrated Ranking Methodology. An additional Rs 260 crore was provided for the fully provisioned Gensol account. Also, Stage 2 asset provisioning was also raised to 1.25% as a prudence said disbursements in FY25 were largely driven by the distribution sector, mainly state-run DISCOMs and renewables, aiding the loan book to grow 12.81% to Rs 5.43 lakh crore including renewables at Rs 80,000 company's chairperson Parminder Chopra said she expects the loan book to expand 10-11% in FY26, led by the nuclear energy front, Chopra said the company is open to funding but is awaiting a clear policy direction from the thermal projects, she said that while it continues to support state and private players, disbursements will materialize over the medium term due to longer gestation cycles. In contrast, renewable projects offer shorter turnaround and will likely drive near-term funding.
Time of India
21-05-2025
- Business
- Time of India
Distribution, RE our main growth drivers in loan disbursements; nuclear energy another lending opportunity for us: Parminder Chopra, CMD, PFC
Mumbai: State-run Power Finance Corp ( PFC ) on Wednesday said its renewable energy book has crossed ₹80,000 crore milestone and is at ₹81,031 crore as on 31 March 2025, registering an increase of 35 per cent from last financial year. 'Our renewable energy portfolio has reached ₹81,031 crore, an increase of 35 per cent from the previous financial year… The main growth drivers were distribution and renewable energy, which contributed 55 per cent and 17 per cent to the disbursements,' said its Chairman and Managing Director (CMD) Parminder Chopra at the press conference here. On expansion in nuclear generation space, she said that will be another lending opportunity for PFC going forward. 'We are waiting for a clear policy direction from the government. Since we are the largest power sector lender, we will definitely be happy to fund nuclear energy as well,' she added. Chopra said that India is steadily moving towards its 2030 energy transition targets. FY25 saw a record renewable capacity addition of around 30 GWs, with solar power comprising 80 per cent of these additions. 'The PM Surya Ghar Muft Bijli Yojana, launched in February 2024, is also contributing to India's green energy goals. As of March 2025, the scheme has facilitated installation of over 3 GW of rooftop solar capacity, covering over 10 lakh homes. Additionally, 27 GW is targeted by March 2027 under the scheme,' she added. India has 17 GWs of rooftop solar installed capacity. This brings the total installed renewable capacity in India to 220 GW as on March 31, 2025, representing about 45 per cent of the country's total installed capacity. 'As India's electricity demand continues to rise, renewable energy is expected to be a significant share of our installed capacity. Considering the intermittent nature of renewables, ensuring grid stability and reliable power supply will be critical for our energy security,' said Chopra. The government is focusing on energy security in a threefold manner. First is by focusing on making renewable energy firm and dispatchable by integrating it with energy storage solutions. Second, by strategically complementing renewable power with capacity additions in the thermal generation space. Third, by exploring expansion of nuclear energy capacity. 'Aligned with this focus, the new renewable power options are increasingly emphasizing integrated projects such as solar-wind hybrids and generation-coupled projects coupled with battery energy storage or pumped storage projects,' she said. For instance, in February 2025, the Central Electricity Authority has mandated minimum two hours of co-located energy storage system in future solar trend tenders. In 2025, more than 50 per cent of the total option capacity was for integrated renewable. 'I want to emphasise that grid-scale energy storage technology, especially when battery energy, are still in their early stages of growth and adoption, not just in India but globally,' she said. As the rate of adoption increases, rapid technological advancements are likely, resulting in cost reductions and increased efficiency. The decreasing tariff trend will help in achieving significant scales going forward, said Chopra. 'The situation mirrors the early days of solar PV projects in India. The evolution of energy storage technologies and the surrounding ecosystem will be key detrimental for future renewable energy growth . Just as we were pioneers in supporting renewable energy projects, PFC is committed to be at the forefront of funding these emerging technologies,' she added.
Reuters
30-04-2025
- Business
- Reuters
$1.5 billion bond rush on the cards as Indian firms step up debt raises post RBI liquidity boost
MUMBAI, April 30 (Reuters) - Indian companies, led by state-run firms, have accelerated their plans to raise debt from the markets as the central bank's fresh bond purchase scheme surprised markets and pushed borrowing costs lower. Four Indian state-run firms - Power Finance Corp ( opens new tab, NHPC, IREDA and HUDCO - are set to raise an aggregate of 125 billion rupees ($1.5 billion) and have invited bids on Wednesday and Friday. State-run firms have already raised around 393 billion rupees via bonds earlier this month. "The recent rush of issuances by state-run firms looks like a well-timed move to benefit from softening yields after the Reserve Bank of India's bond buying announcement," Suresh Darak, founder of Bondbazaar, an online bond trading platform. On Monday evening, the RBI announced it plans to buy bonds worth 1.25 trillion rupees through open market purchases, after picking up bonds worth 1.20 trillion rupees in April. AAA-rated corporate bond yields across the curve have eased by around 5-10 basis points since then, and spreads with government bond yields have shrunk further. "By front-loading borrowings, these companies are locking in lower funding costs; (it) reflects smart liability management," Darak said. Including these issuances, state-run firms have raised around 518 billion rupees - more than five times the roughly 100 billion rupees that such companies raised in April 2024. It also constitutes more than 50% of the total funds raised by companies in the first five weeks of the current fiscal 2026. "Issuers want to take advantage of the fall in yields, and that is a primary driver that they are rushing to issue debt," said Umesh Khandelwal, chief business officer at Tipsons Group. For context, all debt fundraises in the first five weeks of fiscal 2025 came up to 450 billion rupees. Apart from these firms, non-banking finance companies have also been major issuers, including Shriram Finance and Bajaj Finance. Among the borrowers hitting the market this week, PFC is raising 35 billion rupees through zero-coupon deep-discount bonds with a maturity of 10 years and one month. Traders are anticipating aggressive demand for this issue. ($1 = 85.1140 Indian rupees)
Reuters
12-03-2025
- Business
- Reuters
India's PFC gets government nod to issue deep-discount long-tenor debt
MUMBAI, March 12 (Reuters) - India's Power Finance Corp (PFC) ( opens new tab has received government approval to raise up to 100 billion rupees ($1.15 billion) through a rarely used corporate bond structure. PFC can raise these funds with a maturity of 10 years and one month until the end of March 2027 by issuing deep-discount zero-coupon bonds, a government document showed on Tuesday. Deep-discount bonds are generally issued at a more than 20%-25% discount to their face value and do not pay regular interest, a feature similar to zero-coupon notes that removes reinvestment risks. Though these bonds are not tax-free, they offer a significant long-term capital gains benefit, which pushes up demand for such notes, while the rarity also attracts investors across segments, according to bankers. Such bonds are an appealing investment bet for corporate treasuries and high net worth individuals as they do not carry reinvestment risks and provide decent returns, one of the bankers said. PFC did not reply to a Reuters email seeking comment. The move comes after REC, another state-run issuer, raised 50 billion rupees through deep-discount zero-coupon bond with a maturity of 10 years and one month in September, at a yield of 6.25%. Separately, PFC is set to raise up to 80 billion rupees through bonds maturing in 13 months and in three years and four months on Thursday. The company has also approved a borrowing programme of 1.4 trillion rupees for the financial year that starts in April. ($1 = 87.1920 Indian rupees)
Bloomberg
21-02-2025
- Business
- Bloomberg
Adani Green Seeks to Recast $1.1 Billion Loan in Rupees Post DOJ
Adani Green Energy Ltd., controlled by Indian billionaire Gautam Adani, is in talks with local lenders including Power Finance Corp. to refinance as much as $1.1 billion worth of dollar debt in rupees, according to people with knowledge of the matter. The renewable unit of port-to-power conglomerate Adani Group is in the final stages of signing a deal for a long term loan to refinance obligations coming due by the end of March, the people said, requesting anonymity as the details are private.
