Moneycontrol
May 31, 2013 09:32 AM IST | Source: PTI

Power Finance Corp eyeing sizeable stake in state-run bank

Satnam Singh, Chairman, PFC said, "We are looking to buy a substantial stake in a PSU (public sector unit) bank which will allow us to have a representation at the board level,"

 
 
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Government-owned power sector lender Power Finance Corp Ltd is looking to buy a stake in a state-run bank and also plans to set up a private equity fund jointly with Tata Capital.


"We are looking to buy a substantial stake in a PSU (public sector unit) bank which will allow us to have a representation at the board level," the company's Managing Director Satnam Singh told reporters.


The state-run lender for power projects has sent a letter to the power and the finance ministries expressing its interest in buying a stake in any state-run bank a month ago, Singh said.


Also read: ICRA explains: How NBFCs will gain from banking licences


Indian power utilities have struggled to build new plants, as projects get mired in red tape or suffer acute supply shortages of coal or gas.


"To begin with, it (the private equity fund) will be of USD 300 million and eventually, it will be a USD 1 billion fund," he said.

Earlier, the company posted a 58.19 percent rise in quarterly net profit from a year earlier.

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