INVESTOR FAQ’S PFC

A. Corporate Overview

1. How the corporate journey of Power Finance Corporation Ltd (PFC) from its
incorporation has evolved?

Power Finance Corporation (PFC) was incorporated in 1986 as a government-owned financial

institution with the primary objective of providing financial assistance to the power sector in India.

PFC is a Public Sector Undertaking (PSU) under the administrative control of Ministry of Power
and is also registered as Systematically Important Non-Banking Financial Company (SI-NBFC) with
Reserve Bank of India (RBI).

Further, PFC through its strategic partnership with the Govt. of India, has contributed significantly
in implementation of various reform schemes and measures. Some of the current major reform
schemes where PFC is designated as the nodal agency includes Revamped Distribution Sector
Scheme (RDSS) and Late Payment Surcharge (LPS).

When PFC was incorporated, India was an energy-deficit nation. In the last thirty-six years, PFC
played a crucial role in India achieving energy sufficiency and is now supporting the nation’s
transition to a greener future.

Over the years, PFC has grown by leaps and bounds and now stands as the pillar of support for
power sector:

PFC Group is the leading financial institution in India in the power sector-

 PFC is among the Top 10 Profit-Making CPSEs in FY 2021-22 as per the "Public Enterprises
Survey 2021-22” published by the Department of Public Enterprises, Ministry of Finance.
 PFC conferred with Maharatna Status, the highest recognition for a CPSE in October 2021.
 PFC is ranked 365th in the world in terms of balance sheet asset size as per Forbes Global 2021.
 PFC is ranked 34th in Fortune 500 India 2022.
 PFC delivered the highest ever net profit of Rs. 11,605 crores in FY 2022-23.
 Largest consolidated balance sheet size among all Central Public Sector Enterprises (CPSEs)

Now, with the recently accorded Government mandate, PFC has forayed into financing of logistic
and infrastructure sector. This will complement the existing role of PFC and enable us to be part
of the India growth story.

2. What is PFC’s area of operation?

PFC provides financial assistance to entire power sector value chain across India. This includes
financing to state and private utilities in generation, transmission, distribution space including
financing the associated forward and backward linkages.

PFC is the preferred financer & key catalyst for facilitating development of the sector:

 More than Rs. 8 lakh crore of disbursements made since inception

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  238 GW of Generation Capacity Addition supported till date, out of which 44 GW is
towards renewable energy (including Large Hydro)
 Largest funding agency for renewable in India

Recently, PFC has expanded its business beyond the power sector and going forward can provide
financing to logistics and other infrastructure sectors of the economy.

PFC through its subsidiary, PFC Consulting Ltd. also provides advisory and consulting services to
the power sector, and has played a key role in implementation of various Government initiatives
such as the PRAAPTI Portal, SHAKTI Scheme, Ultra Mega Power Projects, Independent
Transmission Projects, etc.

3. Where is PFC located?

The corporate office of PFC is located at 'Urjanidhi', 1, Barakhamba Lane, Connaught Place, New
Delhi, India – 110001.

We also have two liaison offices-

 Mumbai- Ground Floor, Moonlight Building, 158 Maharishi Karve Road, Churchgate,
Mumbai- 400020
 Chennai- Module No. 38&40, 3rd Floor, Block I, Electronic Complex, Thiru Vi Ka Industrial
Estate, Guindy, Chennai- 600032

4. What is the credit rating of PFC?

PFC has the highest domestic credit rating of AAA from India’s top 3 rating agencies - CRISIL, ICRA
and CARE, which represents the highest degree of safety rating. Further, PFC has investment grade
international rating of BBB (minus) & Baa3 from FITCH & Moody’s respectively, which are at par
with sovereign rating.

5. Who are the members on PFC’s board of directors?

The Board of Directors consists of highly qualified and committed team with strong expertise and
extensive experience in power and allied sectors. The Board comprises of seven members which
includes Chairman & Managing Director, Whole Time functional directors, Part Time Government,
Nominee Director and Independent Directors including one Independent Women Director. The
composition of Board of Director is as under: -

 Smt. Parminder Chopra, Director (Finance) with additional charge for the post of Chairman
& Managing Director1
 Shri Rajiv Ranjan Jha, Director (Projects)
 Shri Manoj Sharma, Director (Commercial)
 Shri Ajay Tewari, Director (Government Nominee)
 Shri Bhaskar Bhattacharya, Independent Director
 Smt. Usha Sanjeev Nair, Independent Director
 Shri Prasanna Tantri, Independent Director

1 With effect from 01.06.2023

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6. Who regulates PFC?

PFC was incorporated on 16th July, 1986 as a Public sector company under the administrative
control of Ministry of Power and is subject to provisions of Companies Act, 2013. Also, being a
Systematically Important Non-Deposit taking Non-Banking Financial Company classified as
Infrastructure Finance Company (SI-ND-NBFC-IFC), PFC is regulated by Reserve Bank of India (RBI).
Further, PFC is listed on National Stock Exchange & Bombay Stock Exchange and hence is also
regulated by Securities and Exchange Board of India (SEBI).

7. In which stock exchanges are PFC’s shares listed and what are PFC stock symbols?

PFC shares are listed both on BSE and NSE with stock symbol “PFC".

8. Does PFC accept deposits from public?

PFC is classified as non-deposit taking Systematically Important-Non-Banking Financial Company
(SI-NBFC) and as per Reserve Bank of India regulations, these NBFC can’t accept public deposits.
Therefore, currently, PFC doesn’t accept deposits from public.

9. When is PFC’s Annual General Meeting?

PFC holds an Annual General Meeting (AGM) each year, usually in 2nd Quarter. Go to the “Annual
Reports” page (https://www.pfcindia.com/Home/VS/72) to check if the date of the next AGM
has been formally announced and to see notices from previous meetings and information about
previous AGMs.

The last AGM for FY 2021-22 was held on 21st September,2022 through video-conferencing.

10. When does PFC report its financial results? Does PFC follow silent/quiet period?

The accounting period starts from 1st April and up to 31st March of the following year.

As per the SEBI Listing Regulations, the listed entity shall submit quarterly financial results within
45 days of the end of the quarter for first three quarters and within 60 days from the end of the
financial year for the last quarter. In compliance of these regulations, the quarterly results for
Q1 (Apr-June) are usually announced by mid-August, for Q2 (Jul- Sep) by mid-November, for Q3
(Oct-Dec) by mid-February and for Q4/annual results are usually announced at the end of May.

Yes, PFC follows silent periods prior to its earnings release every quarter. During the quiet period,
the company or any of its officials will not discuss on company’s performance with any external
parties. The silent period is observed 10 days prior to announcement of PFC and REC’s
quarterly/annually results.

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B. General Financial Information

1. What is the 5-year profit CAGR of PFC?

The 5 year CAGR of PFC (FY 2018-19 to FY 2022-23) is at 13.66%. PFC is a consistently profit-making
company and delivered the highest net profit of Rs. 11,605 crores in FY 2022-23.

2. What is the size of PFC loan asset book as per latest announced results?
PFC loan asset book stood at Rs. 4,22,498 crores as on 31.03.2023. The loan asset book has
increased at a 5-year CAGR of 7.64% from FY 2018-19 to FY 2022-23.

The loan asset mix constitutes of 83% loans to government sector and 17% to private sector. The
discipline wise constitution of loan assets is as follows-

Category %
Discipline-wise
Generation 54%
- Conventional Energy 42%
- Renewable Energy -Others 8%
- Renewable Energy - Large Hydro (>25 MW) 4%
Transmission 7%
Distribution 38%
Others 1%
Total 100%

3. What is the Net NPA ratio of PFC?

The net NPA ratio of PFC for FY 22-23 was 1.07%. This was the lowest Net NPA ratio in the last 6
years, which reflects our continuous efforts towards resolution of stressed asset.

4. What is the net worth of PFC as per latest announced results?

The net worth of the company was Rs. 68,202 crores as on 31st March,2023.

5. What is the capital adequacy ratio of PFC?

PFC maintains capital adequacy ratio in accordance with RBI regulations. The Capital adequacy
ratio was 24.37% in FY 2022-23 i.e. well above the minimum statutory level prescribed by RBI.

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C. Dividend

1. What is the permissible dividend limit that can be paid?

As per the extant guidelines issued by Department of Investment and Public Asset Management
(DIPAM), every CPSE would pay a minimum annual dividend of 30% of PAT or 5% of the Net worth,
whichever is higher subject to maximum dividend permissible under the extant legal provisions.

However, an exception clause has also been provided where CPSEs are permitted to propose
lower dividend with special approval of the ministry.

Also, as per RBI guidelines regarding distribution of dividend by NBFCs, there is a ceiling of
dividend payout ratio (i.e. ratio between amount of dividend payable in a year and the net profit
as per audited financial statements) of 50%, subject to conditions.

2. What is the dividend pay-out history at PFC?

PFC has been consistently paying dividends and is committed to deliver sustainable value to all
stakeholders.

The dividend payout in last 10 years is shown below in the table:

Fiscal Year Dividend per Market price per share as on Dividend Yield (%)
share (₹) last date of financial year (₹)
2012-2013 7 181.50 3.86%
2013-2014 9 193.40 4.65%
2014-2015 9.10 272.75 3.34%
2015-2016 13.90 171.85 8.09%
2016-2017* 5 145.90 3.43%
2017-2018 7.80 85.90 9.08%
2018-2019** 0 123 0
2019-2020 9.50 92.15 10.31%
2020-2021 10 113.65 8.80%
2021-2022 12 112.45 10.67%
2022-2023 13.25 151.75 8.73%
*During FY 2016-17, bonus equity shares issued to exisiting shareholders in ratio of 1:1

** Special approval taken for paying nil dividend on account of REC acquisition

3. What is the record date for dividend?

The record date is the cut-off date announced by a company in order to ascertain the name of
shareholders who are eligible to receive the dividend. To illustrate, final dividend of Rs 1.25 per
equity share declared for FY 2021-22 had record date of 10th June,2022 i.e., dividend will be paid
to the shareholders whose names appear on the PFC’s register of members on 10th June,2022.

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4. What is the payment date for dividend?

PFC generally pays interim and final dividend in a financial year.

For interim dividend, the dividend is required to be paid to shareholders within 30 days from the
date of declaration by Board.

The final dividend for a financial year announced in Board meeting is subject to shareholders
approval in the ensuing Annual General Meeting. As per the statutory regulations, dividend is
required to be paid to shareholders within 30 days from the date of approval at AGM. Continuing
with the last answer illustration, AGM for FY 2021-22 was held on 21st September, 2022 implying
dividend need to be paid on or before 20th October,2022.

5. Whom should a shareholder contact in case of non-receipt of dividend or any other

dividend related query?

For any such queries, a shareholder can contact the PFC’s registrar and transfer agent, the details
are available at - https://www.pfcindia.com/Home/VS/74.

Also, the query can be mailed to us at [email protected].

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D. 54EC Bonds

1. What are 54EC Bonds?

Capital gain bonds or 54EC bonds are the fixed income debt instruments that provide capital gains
tax exemption under section 54EC of Income tax Act,1961 to the investors. In other words, the
tax liability on long-term capital gains from sale of immovable property can be reduced by
investing in 54EC Capital Gains Bonds, subject to conditions mentioned in Section 54EC.

2. Does PFC issue 54EC Capital Gains tax exemption Bonds?

Yes, PFC issues 54EC bonds in pursuance of approval received on 8th June,2017 from Central
Board of Direct Taxes, Ministry of Finance.
Since then PFC has mobilized more than Rs. 4,000 crores through 54EC bonds.

3. What is the interest rate on 54EC Bonds?

PFC’s capital gain bonds offer an interest rate of 5.25%2 per annum, payable annually on July 31st
each year, until the date of redemption. Further, no tax is deductible at source on interest to
Resident Indians.

4. Where can I find details regarding PFC 54EC Bonds such as application form,
information memorandum etc.?

All the details regarding 54EC bonds can be accessed at-

https://www.pfcindia.com/Home/VS/10183

5. Why should an investor prefer PFC’s 54EC Bonds?

 PFC provides unparalleled service and seamless investment process to an investor

interested in investing in 54EC bonds
 Two dedicated help-desk
o one for handling query from application till allotment stage –
[email protected]
o Another for post allotment query – [email protected]
 Quick response time to queries – within 24 hours
 Personalised SMS update on investment from time to time

6. Is there any lock-in period for such type of Bonds?

Yes, the bonds come with a lock-in period of 5 years from the date of allotment and are non-
transferable. Further, premature redemption is not permitted and also the bonds can’t be offered
as security for any loan or advance.

2
Increased w.e.f. FY 2023-24

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7. Whom should an investor contact in case of any query related to 54EC bonds?

For any query, an investor can contact the PFC’s registrar and transfer agent, the details are
available at https://www.pfcindia.com/Home/VS/10183. Also, queries related to application &

allotment stage can directed to [email protected]. For post allotment related

queries, a mail can be sent to [email protected].

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E. Investor Repository

1. Where can I find information regarding the financial results of the company?
The quarterly and annual financial results of PFC can be accessed through the below link:
https://www.pfcindia.com/Home/VS/73

2. Where can I find PFC’s investor relation presentation?

The PFC’s investor relations presentation is available at:
https://www.pfcindia.com/Home/VS/110

3. Where can I find a detailed update on the financial performance of the company?
A quarterly detailed update on PFC’s financial performance is being shared on PFC’s website post
the release of quarterly results. The same can be accessed at
https://www.pfcindia.com/Home/VS/10201

4. Where can I find details on earning calls scheduled & transcript released by the
company?
The details on earning call schedule is updated on the stock exchanges and also on PFC’s website
at https://www.pfcindia.com/Home/VS/10171.

The transcript of investor call can be accessed via below link-

https://pfcindia.com/Home/VS/109

5. Where can I find the annual report of the company?

The annual report of PFC can be accessed via below link-
https://www.pfcindia.com/Home/VS/72

6. Whom should I contact in case of any equity shares related query?

For any share related queries such as change of name, non-receipt of annual report; dividend
payment etc., a shareholder can contact the PFC’s registrar and transfer agent, the details are
available at - https://www.pfcindia.com/Home/VS/74.
Also, the query can be mailed to us at [email protected].

7. Whom should I contact in case of any Bond related query?

For any bond related queries such as non-receipt of interest, updation of bank details etc., the
bondholder can contact the PFC’s registrar and transfer agent, the details are available at -
https://www.pfcindia.com/Home/VS/10174.

Also, the query can be mailed to us at [email protected] and at

[email protected] in case of 54EC bonds.

8. Whom should I contact for update on financial performance of the company?

PFC has a dedicated Investor Relations Cell to provide information to investors on PFC’s
performance. For any queries related to PFC’s performance or for scheduling a meeting, mail can
be directed to [email protected]
***

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