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    PFC NPAs to reduce with resolution of 4 stressed plants: CMD

    Synopsis

    The company’s gross NPAs has reduced from 9.39% to 9.05% after resolution of two stressed assets this year while the net NPAs reduced from 4.61% to 4.28%.

    PFCs

    The company’s gross NPAs has reduced from 9.39% to 9.05% after resolution of two stressed assets this year while the net NPAs reduced from 4.61% to 4.28%.

    State-owned Power Finance Corp (PFC) expects significant reduction in its bad loans with resolution of four stressed power generation assets, expected by the end of this financial year, its chairman and managing director Rajeev Sharma said on Monday.

    Sharma said the company’s gross non-performing assets (NPAs) was expected to reduce to about 5% from 9.05% now, post resolution of these four assets in which the company has an exposure of Rs 7,700 crore. These assets constitute 25% of the company’s bad loans.

    The company’s gross NPAs has reduced from 9.39% to 9.05% after resolution of two stressed assets this year while the net NPAs reduced from 4.61% to 4.28%.

    PFC completed resolution of two projects this year-- GMR Chhattisgarh Energy and RattanIndia Amaravati. “Four other stressed assets will find resolution shortly. These include Jhabua plant, Jal Power, Ind Bharat Utkal and RKM Powergen,” he said.

    While debt for RKM Powergen is being restructured with the existing promotors, all other resolutions are being pursued through insolvency court.

    Sharma said the company will continue diversification of its borrowing portfolio. PFC’s outstanding foreign currency borrowing portfolio has crossed $6 billion. In the current financial year, the company achieved 25% of its borrowings from foreign sources.

    “Presently, PFC’s outstanding foreign currency borrowing is more than $6.5 billion which is about 15% of the total outstanding borrowings," he said. He said the company’s cost of funds has come down to 7.86% from 8.21% a year ago.

    The company on Monday announced listing of $750 million foreign currency bonds on National Stock Exchange-International Financial Service Centre (NSE-IFSC), a wholly-owned subsidiary of National Stock Exchange(NSE).

    This was the largest single tranche of international bond issuance by PFC. The company said the funds from the latest bond issue would be utilised in accordance with the Reserve Bank of India's External Commercial Borrowings guidelines and the bonds will also be listed on India INX and the Singapore Stock Exchange.


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