Power Finance Corporation · Material risks, their source context, and severity in the latest available quarter.
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Risk intelligence
H1 saw INR 1,100 crore exchange loss on unhedged EUR portfolio (11% of loan book EUR-denominated; 5% unhedged). Management expects gradual reversal as EUR/USD normalizes, but timing is market-dependent and not guaranteed.
Draft circular effective April 2026 could reclassify infrastructure exposures from 50% to 75% risk weight for some assets, potentially compressing CRAR. Management has not quantified the impact.
Two generation projects accounted for ~INR 10,000 crore of prepayments in H1. Rising refinancing by borrowers to lower-cost lenders is a structural headwind to maintaining even 10-11% growth guidance.
GOM committee reviewing DISCOM viability; if bailout similar to UDAY materializes, large accelerated prepayments could disrupt loan growth trajectory. Management declined to quantify impact awaiting government report.
