PFC delivers another quarter of strong financial performance
New Delhi: PFC on February 12, 2020 announced its financial results for third quarter ended December 31, 2019. In the results, the company has announced an interim dividend at Rs 9.50 per equity share for FY20.
The company's Q3 FY20 net profit is up by 45 per cent at Rs. 1,680 crore from Rs.1,157 crore in Q2' FY20. The profit for Q3'FY19 was at Rs.2,084 crore.
Further, the Company's Gross NPA (Stage III) ratio saw a drastic reduction of 1.13 per cent year-on-year basis. The Gross NPA ratio (Stage III) as on December 31, 2019 is 8.34 per cent compared to 9.47 per cent last December. Also, the Net NPA ratio has come down to 3.94 per cent, which is the lowest in the last two years.
The Capital Adequacy Ratio increased by 37 bps to 19.32 per cent, compared to 18.95 per cent on December 31, 2018. The CRAR of the company is now back to the levels which existed prior to acquisition of REC.
The company quarterly Yield on Earning assets is within the stable range at 10.66 per cent. The Cost of Funds this quarter has further come down to 7.75 per cent compared to 7.97 per cent in the Q3'FY19. The spread also saw an upward increase from 2.68 per cent in Q3'FY19 to 2.91 per cent in Q3'FY 20.
The total borrowing of the company as on December 31, 2019 is Rs.2,89,264 crore, out of this, 86 per cent borrowing is from domestic markets and 14 per cent from foreign markets. Further, the company is actively diversifying its borrowing sources. The company raised Rs.2500 crore under Bharat Bond ETF launched by the government in December 2019. Further, the company raising through 54EC capital exemption bonds almost doubled compared to FY19. The company also issued a $750 million bond in January 2020 in the international markets. The continuous focus of the company on diversification has led to reduced funding cost for them.
On business growth front, the loan asset book saw a growth of 12 per cent year on year. Further, the company registered 26 per cent growth in disbursements during Q3'FY20.