PFC's tax-free infra bonds by Dec-Jan; Q2 net up 10%

MUMBAI: State-owned Power Finance Corp (PFC), which on Wednesday reported a 10 per cent jump in Q2 net profit at Rs 701 crore, said it is planning to launch tax-free infrastructure bonds by the end of December or early January.

Announcing earnings for the quarter to September, PFC Chairman and Managing director Satnam Singh told newspersons here on Wednesday that "we are looking forward to launch tax-free infrastructure bonds by the end of the year or early next year. But nothing is finalised now as we are awaiting government and RBI approvals."

Asked whether he is confident of raising the needed money from retail infra bonds in the light of the tepid response to the recent issues from IFC and L&T Infra, Singh said he is confident of raising the targeted money (which he refused to divulge) as the market has improved now (referring to the Coal India IPO and the SBI retail bonds).

He further said normally people invest more in the fourth quarter to save on income tax.

The power sector financier posted a net profit of Rs 700.8 crore for the quarter ended September, on an income of Rs 2,538 crore, which grew 24 per cent.

In the Q2 of FY10, the company had posted a profit of Rs 638 crore. Total sanctions touched Rs 17,000 crore during the reporting quarter, while net interest income rose to Rs 941.35 crore.