May 30, 2013, 04.20 PM 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,"

Power Finance Corp eyeing sizeable stake in state-run bank

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.

Power Finance stock price

On April 17, 2014, Power Finance Corporation closed at Rs 184.50, up Rs 2.95, or 1.62 percent. The 52-week high of the share was Rs 209.50 and the 52-week low was Rs 97.40.


The company's trailing 12-month (TTM) EPS was at Rs 40.15 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 4.6. The latest book value of the company is Rs 182.22 per share. At current value, the price-to-book value of the company is 1.01.

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