Power Finance Corp allays fears about stressed assets

NEW DELHI: Power Finance Corp (PFC) on Thursday sought to allay fears of rising stressed assets on its books, saying that it was caused by the lender’s decision to apply new central bank rules and not because of any sudden deterioration in loan quality.

The firm will expand into refinancing and launch special financial packages for power transmission projects won through competitive bidding, chairman Rajeev Sharma told ET.

Power Finance Corp posted a net loss for the fourth quarter and a sharp drop in profit for the fiscal year, as it made a huge retroactive provision against stressed assets.

Sharma said it would have posted a profit comparable to the previous year of about Rs 6,240 crore in FY17 had it not made the provision, the impact of which was Rs 3,786 crore.