Power Finance Corporation's third quarter profit is expected to be impacted due to higher provisions. Profit is likely to increase 3.6 percent year-on-year to Rs 1,589.3 crore during the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Net interest income is seen rising 17 percent to Rs 2,520 crore in the quarter ended December 2014 from Rs 2,161 crore in same quarter last fiscal, led by steady loan growth and improving net interest margin (due to easing wholesale rates).
Net interest margin is expected to be stable at around 5 percent as against 4.98 percent in Q2FY15, say analysts.
Analysts expect 18-20 percent loan growth during the quarter while they expect higher provisions. In Q2FY15, provisions were up 107 percent Y-o-Y to Rs 284 crore.
Asset quality will be closely watched, which was stable in Q2FY15. Gross non-performing assets were flat at Rs 1,977 crore and NPAs declined 5 percent year-on-year to Rs 1,543 crore in September quarter.
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