The Hindu : Business : PFC may enter insurance sector

Online edition of India's National Newspaper
Wednesday, Apr 13, 2005

Business

Business

PFC may enter insurance sector

By Our Special Correspondent

NEW DELHI, APRIL 12. The public sector Power Finance Corporation (PFC) is exploring the possibility of entering the insurance business while also considering tapping the market with an initial public offer (IPO) in June this year.

Disclosing this here today, the PFC Chairman and Managing Director, Arvind Jadhav, said the company was waiting for Government approval for the IPO. He said the corporation planned to raise its equity by ten per cent through the offer while the Government stake might also be divested to the same extent.

Addressing a press conference to outline the company's performance during 2004-05, he said PFC profits had dipped by 39 per cent to Rs. 980 crores in 2004-05 from Rs. 1,607 crores in the previous year. This was mainly due to change in the accounting policy in respect of loans from cash to accrual basis. During the year, he said the corporation disbursed Rs. 9,405 crores against Rs. 8,974 crores in 2003-04. Loan sanctions increased 12 per cent to Rs. 18,573 crores from Rs. 16,472 crores.

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