FY25 Loan Growth Target of ~14%
Management reiterated guidance to maintain similar loan asset growth levels for FY25 despite Q1 disruption from transformation exercise. Expected to achieve targets in remaining nine months.
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Power Finance Corporation · forward-looking guidance across the available source record.
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growth
NIM Guidance of 3.25-3.50%
Company expects to maintain margins within the guided range of 3.25-3.5% for FY25, citing competitive dynamics.
Infrastructure Share Target of 30% in 3-4 Years
Infrastructure book currently at 1.56% (INR 7,400 crore outstanding) of total loan book. Management aims to grow this gradually to 30% over 3-4 years as power sector book also grows.
KSK Mahanadi Resolution Within FY25
Bids received for 1,800 MW project with expected recovery >100% of INR 3,300 crore outstanding. NCLT-driven process expected to conclude within current financial year.
~14% Loan Book Growth for FY25
Management stated expecting 'similar level of growth as last financial year' which was ~14% YoY, aligning with robust H1 sanctions of INR 1.6 lakh crore and improved disbursement trajectory.
NIM to Remain in 3%-3.5% Range
Guided that margins will stay within the stated range, noting H1 NIM was 'slightly above 3.5%' at 3.57%, with trajectory dependent on growth and mix.
TRN and Shiga Energy Resolution by FY25 End
Shiga Energy (INR 522 crore) and TRN Energy (INR 1,139 crore) are in 'advanced state of resolution' with lender approvals received for Shiga; documentation and implementation expected by fiscal year-end.
KSK Mahanadi Resolution Timeline Uncertain
While bid evaluation is underway with expected >100% recovery on principal, final resolution depends on NCLT approval timing which management cannot commit to.
Loan Book Growth FY26: 10%-11%
Management reiterated full-year guidance of 10-11% loan book growth. H1 growth of ~14% YoY was partly driven by lower base and strong disbursements; H2 expected to moderate as repayments/prepayments absorb part of the growth.
Capital Adequacy Well Above Regulatory Minimum
CRAR at 21.62% (Tier-1: 19.89%) vs regulatory minimum ~15%, providing headroom for growth. Maintaining ~30% dividend payout of PAT.
RBI Project Financing Directions (Effective Oct 1, 2025)
1% provisioning required during construction phase, 0.40% during operational phase. PFC's existing ECL provisioning (~1.01% on Stage 1+2) exceeds these minimums; any incremental requirement to be booked through impairment reserve without P&L impact.
RBI Draft Risk Weight Circular (Effective April 2026)
Draft introduces 50%/75% risk weight split for commissioned infrastructure assets vs current uniform 50%. Under review; implications on CRAR being assessed across generation, transmission, and distribution portfolios.
Full-year loan growth target maintained at ~14%
Management expects to achieve similar growth levels as FY2024, citing historical pattern where 37% of annual disbursements occur in Q4, providing confidence in meeting guidance.
Renewable portfolio to maintain 28% YoY growth trajectory
PFC sanctioned INR 90,000 crore for renewable generation in FY25, with ~50% in Q3 alone, and disbursed INR 16,000 crore year-to-date, expecting continued momentum.
RDSS execution to accelerate from Q4 onwards
94% of RDSS loss reduction works awarded and 90% of smart metering works completed; INR 2,500 crore cumulatively disbursed under RDSS with INR 600 crore in Q3.
KSK Mahanadi resolution to drive provision reversals in Q4
Resolution plan filed in NCLT on January 17, 2025; expecting >100% recovery with 55% provisioning maintained, which should result in reversals upon approval.