State-run and finance provider for power sector Power Finance Corporation (PFC) has declared its results for the quarter ended December 2010. It has reported net profit at Rs 659 crore in Q3 as against Rs 563.7 crore in Q3FY10, a growth of 16.91%.
In an interview with CNBC-TV18, Satnam Singh, Chairman and MD, PFC, spoke about the results and his outlook for the company. Below is a verbatim transcript of his interview with CNBC-TV18's Sonia Shenoy. Also watch the accompanying video. Q: Can you first just take us through your numbers, what does the net interest income (NII) look like this time around and how have the disbursements been? A: I would like to start with loan assets which is an indication of growth. For the quarter and for the first nine months, our loan assets have grown up by 27% from Rs 72,000 crore to Rs 92,000 crore. This is in line with our disbursement growth which is 20% higher, for the quarter, from Rs 6,400 crore to Rs 7,800 crore and for first nine months 45% higher from Rs 15,000 crore to Rs 22,000 crore. I would also like to share with you that going forward our disbursement growth and loan asset growth is likely to continue, since we have outstanding sanctions of Rs 170,000 crore in hand. As a result of all this loan asset growth and disbursement growth our profitability for the quarter, profit after tax, for the quarter has gone up by 17%. However, if we make adjustments for extraordinary items such as translation loss and nodal agency fee, then the profit actually has gone up by 23%. Similarly, for the first nine months, the profit after tax has gone up by 15% and comparable profit after tax based on adjustments has gone up by 23%. All this has happened because our spread has gone up by 11 basis points. Q: What is your net interest margin for the quarter? Where does it stand at? A: For the quarter, net interest margin is 4.09%. For first nine months, it is 4.12%. Q: Could you tell me what your absolute NII number is for this quarter? A: NII numbers for the quarter are Rs 926 crore against Rs 746 crore previous year, third quarter and cumulative for nine months is Rs 2,680 crore against Rs 2.166 crore which is 24% higher. Q: Your disbursements have been going at quite a healthy rate, this time around you have done 20% you just mentioned. Will you be able to meet your disbursement target of about Rs 29,500 crore that you have outlined for the fiscal? What is the estimate for the next fiscal as well? A: First nine months, our disbursement growth has been 45%. Since we have got huge outstanding sanctions in hand, Rs 170,000 crore, we are sure to meet out targets. How much we will surpass it? We will be able to tell sometime around mid of March. Q: And what about your asset quality, thatDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
