Government-owned Power Finance Corporation (PFC) has reported a 20% increase in consolidated Profit After Tax (PAT), rising from ₹59.82 billion (~$712.6 million) in the first quarter (Q1) FY2024 to ₹71.82 billion (~$855.4 million) in Q1 FY 2025.

The consolidated loan asset book crossed the ₹10 trillion (~$119 billion) mark, standing at ₹10.05 trillion (~$119.7 billion) as of June 30, 2024, compared to ₹8.87 trillion (~$105.6 billion) a year earlier.

The company’s net worth, including non-controlling interest, increased by 20% year-over-year (YoY), reaching ₹1.42 trillion (~$16.9 billion) as of June 30, 2024, up from ₹1.18 trillion (~$14 billion).

The gross Non-Performing Assets (NPA) ratio improved to 2.97%, down from 3.54% in Q1 FY24.

The net NPA ratio also dropped from 1% in Q1 FY24 to 0.84% in Q1 FY25.

The company’s strategic initiatives and prudent financial practices have contributed to significant growth in profitability and asset quality.

Last November, PFC approved projects worth ₹1.17 trillion (~$14.04 billion) for various state distribution companies (DISCOMs) under the Revamped Distribution Sector Program as of September 2023. The public sector lender also approved loans worth ₹70 billion (~$8.4 billion) and disbursed ₹31 billion (~$3.7 billion) under the Late Payment surcharge program, fetching the DISCOMs more than a 50% reduction in legacy dues.

PFC recorded a total income of ₹241.76 billion (~$2.89 billion) for the fourth quarter (Q4) of the financial year (FY) of 2024, a 20% YoY increase from ₹200.74 billion (~$2.4 billion).

At the recent Mercom India Renewables Summit 2024, PFC’s Executive Director P K Sinha said PFC offers subsidized interest rates for renewable energy projects and is exploring funding opportunities in emerging areas such as pumped storage, battery storage, and green hydrogen.

He said in the past year, PFC funded around ₹600 billion (~$7.1 billion), up from ₹480 billion (~$5.7 billion) in the previous year, to the renewable energy sector.