Key highlights

Total cumulative loan book as on June'15 stood at around Rs 6582 crore as compared to Rs 4956 crore for June'14. About 40% is from renewable, about 32% is from thermal projects, about 9% from hydro projects and rest is contributed by other sectors.

Yield on asset stood around 13.88% and NIM stood at 6.47% and as per the management, NIM should hover around 6.5% level going forward, given the constant reduction in cost of funds.

CAR is around 23% and management is comfortable around level of 20's.

As per the management, Loan disbursement stood at Rs 515 crore, up by 150% YoY. Loan disbursement has picked up, given that in FY'15, loan disbursement was lower on YoY basis due to slower progress of government policies on renewable front. While the policy action is encouraging, and disbursements are happening, it is difficult to project the growth in disbursement in FY'16.

Total cumulative debt sanctioned stood at Rs 11320 crore, of which renewable now account for 47% of total sanction. About 80% of the renewable loan book being wind power and remaining solar power.

The company has received Rs 312 crore by divesting its entire stake in Ind Bharat Energy.

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. So while construction activities are in progress there is a delay and some concrete update will be available by the end of FY'16. The latest development to this project is that the cost over runs have been approved by the lead institutions.

There are no further restructuring in the quarter and restructured assets stands around Rs 400 crore. Rs 200 crore relates to actual Restructured assets and remaining Rs 200 crore comprises of delay in DCCO (date of commencement of commercial operation) projects, wherein RBI has allowed the Thermal power projects which have yet not commissioned till date, a time period of 2 more years before treating them as restructured.

Konaseema project is ready to operate, but could do due to delay in gas supply. Management expects the project to commission by Q3 FY'16 and gas should start flowing to this prestigious project.

Overall, management continues to be cautiously optimistic going forward with a clear thrust on renewable energy.