Key highlights

As per the management, while uncertainty and risks continue to remain in power sector financing, some of the measures on tariff policy, Uday scheme, availabitly of coal etc are very encouraging for the sector as a whole. The good news is that nobody is allowing the situation to make worse than the current levels, while lot of actions have been planned to improve the current situation.

Also as per the management, there are plans to convert the old smaller thermal projects of around Rs 26000 MW to super critical thermal power projects and to run the upgraded T&D line parallel to the generation stage of these projects. All these auger well for future of funding the power sector which is otherwise surrounded by uncertainties.

Total cumulative loan book as on Mar'16 stood at around Rs 8634 crore as compared to Rs 6379 crore as on Mar'15. About 44% is from renewable (wind and solar), about 30% is from thermal projects, about 5% from hydro projects and rest is contributed by other sectors.

Yield on asset stood around 13.07% and NIM stood at 5.98% and as per the management, NIM should hover around 6% level going forward, given the constant reduction in cost of funds.

CAR is around 21.8% and management is comfortable around level of 20's.

Loan disbursement as on Mar'16 stood at Rs 3555 crore, up by 43%.

Total cumulative debt sanctioned stood at Rs 15074 crore, of which renewable now account for 53% of total sanction. About 75% of the renewable loan book being wind power and remaining solar power. Thermal Power accounted for around 23% of total sanction.

East Coast Energy project is a 1320 MW project in which PFS has invested around Rs 133 crore. There is a cost overrun in this project and promoters are not able to bring in their equity portion. The cost over runs has been approved by the lead institutions. PFS has received FIPB approval to swap its shareholding into share of holding company.

There are no further restructuring in the quarter and restructured assets stands around Rs 439 crore. As per the management, there are all standard restructured assets comprises of 5 accounts. Management is confident of receiving funds from 1 of the account very soon. So far provision of Rs 22 crore has been voluntarily made by the company.

Gross NPA stands at Rs 293 crore. Provisions made are to the tune of around Rs 93 crore. Net NPA stood at 2.35%. Net of Provisions, outstanding for Konaseema project stands at Rs 76 crore and Suvarna around Rs 84 crore and rest comprises of 3 more accounts.

The company has received Board approval to raise funds to the extent of around Rs 750 crore. While the mode of fund raising has yet not decided, management has indicated that they are not in a hurry to raise funds and it's a gradual process.

Management has clearly indicated that while Power sector as a whole will continue to be its major financing stream, and emphasis will be on renewable energy, the company also intends to diversify and fund various projects such as Rooftop panels in Solar, Distributor Generators, Offshore wind projects, Last mile annuity based road projects, small thermal power projects, railways, ports etc.