PFC reports Q4 loss of Rs3,409 crore
PFC posted a standalone net loss of Rs3,409.49 crore in the fourth quarter due to lower interest income and provisions for bad loans
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New Delhi: State-run Power Finance Corp. (PFC) on Monday reported a standalone net loss of Rs3,409.49 crore in the quarter ended 31 March 2017 due to lower interest income and provisions for bad loans.
The company had posted a net profit of Rs1,259.65 crore in the corresponding quarter of the previous fiscal, PFC said in a BSE filing. Apart from approving the financial results of the company, the board of directors in its meeting held on Monday also decided not to recommend any final dividend for 2016-17 to be declared by the shareholders in the annual general meeting for last fiscal. According to statement, the company’s total standalone income was down at Rs5,797.04 crore in the fourth quarter from Rs6,786.99 crore one year ago.
The interest income also came down to Rs5,513.77 crore in fourth quarter, from Rs6,608.14 crore in the quarter ended 31 March 2016. Under the credit concentration norms, the company has classified standard assets amounting to Rs35,994.70 crore as restructured standard assets. The provision on such loans has been increased from 0.35% to 4.25%. Thus, its profit before tax for the quarter and year ended on 31 March 2017 decreased by Rs1,403.79 crore. The company has stated that its profit before tax has also reduced by Rs963.16 crore due to the provisions for two non-performing assets of Rs8,284.47 crore.
The profit before tax also decreased by Rs1,083.38 crore due to provisions for bad loans of over Rs5,000 crore. All these provisions decreased profit before tax by Rs3,954.55 crore in the quarter and year ended on 31 March 2017. The company’s standalone net profit for 2016-17 was down at Rs2,126.39 crore from Rs6,113.39 in 2015-16. The PFC’s consolidated net profit was also down at Rs2,236.10 crore in 2016-17, from Rs6,184 crore in 2015-16.