PFC net rises by Rs 50cr in Q2

The Power Finance Corporation Limited has registered 22.5 per cent increase in the net profit at Rs 282.22 crores for the second quarter of the current fiscal year as against Rs 230.35 crores for the corresponding period, a year ago. The profit before tax increased by Rs 84 crores at Rs 420 crores for the quarter ended September 30, 2007.

The company’s total income increased by 38 per cent to Rs 1,228 crores during the quarter from Rs 890 crores in the same period last fiscal. Addressing the media here, Power Finance Corporation chairman and managing director V. K. Garg said, "The net interest margin for second quarter at 3.76 per cent registered a growth of 33 basis points when compared to the corresponding period last year. Our spread grew by 21 basis points although the cost of funds increased by 67 basis points." "The yield on assets too rose by 88 basis points. Although our loan assets increased by 21 per cent at Rs 46,582 crores in the second quarter of the current fiscal," he said.