PFC Q2 earnings: Net profit rises to Rs 4,462 cr; board declares interim dividend

Power Finance Corporation Ltd. (PFC) released its September quarter financials on Friday, reporting a year-on-year net profit growth of 2% to ₹4,462 crore compared to ₹4,370 crore in the previous year. The company also recorded a 20% increase in its Net Interest Income (NII) to ₹5,290 crore from ₹4,407 crore a year ago. Shares of PFC ended the day 1.44% lower at Rs 380.45. Market cap of the firm  stood at Rs 1.25 lakh crore.

In its notes to account, PFC stated that it has classified another loan account, with a total exposure of ₹263 crore, as "fraud." The company confirmed that "100% provisioning has been done on the said account." This step underscores PFC's approach to risk management and compliance with regulatory requirements. The announcement follows earlier efforts by PFC to address asset quality concerns and reflects the company's ongoing efforts towards transparency.

PFC also declared an interim dividend of ₹3.65 per share, with a record date fixed as November 26. According to the company,  the interim dividend will be credited to shareholders on or before December 6. Asset quality ratios improved modestly, with the gross credit impaired assets ratio at 1.87% at the end of September compared to 1.92% in June. The net credit impaired assets ratio stood at 0.37% versus 0.38% previously. These developments are in line with the company's continued focus on managing its portfolio and delivering value to shareholders.