State-owned Power Finance Corporation (PFC) is planning to cut non-performing assets by 10 per cent or around Rs 1,500 crore this fiscal, as per an MoU inked with the power ministry.
According to the memorandum of understanding (MoU) inked by the PFC with the power ministry today, the bad loans will be reduced to 90 per cent of the NPAs in 2017-18. The company’s NPAs were around Rs 15,000 crore as on December 31, 2017.
A senior official said that the company will go through tough phase in next couple of years to reduce the bad loans on its books, which was mainly due to change in norms for such assets by the Reserve Bank.
The company is also eying a revenue of Rs 27,000 crore during the current fiscal which will be slightly higher than Rs 26,000 crore expected in previous fiscal. Read More