Power Finance Corporation (PFC), a leading financial institution in India, has announced that the dividend declared for the fiscal year 2022-23 has exceeded the returns offered by popular investment options such as PPF, EPF, and bank fixed deposits (FDs). The company’s strong financial performance in the last fiscal year has allowed it to provide high dividends to its shareholders.
PFC has declared a dividend of Rs 10 per share, which translates to a dividend yield of 7.3% based on the company’s current market price of Rs 136.50 per share. This is significantly higher than the returns offered by other investment options such as the Public Provident Fund (PPF), the Employee Provident Fund (EPF), and bank fixed deposits (FDs).
PPF currently offers a rate of interest of 7.1% per annum, while EPF offers a rate of 8.5% per annum. Bank FDs, on the other hand, offer returns ranging from 4% to 6.5% per annum depending on the bank and the tenure of the deposit.
The announcement of high dividends has been welcomed by PFC shareholders, who are pleased with the company’s strong financial performance in the last fiscal year. The company’s profits have been driven by its focus on financing renewable energy projects and its efforts to diversify its lending portfolio.
PFC Chairman and Managing Director, R.S. Dhillon, expressed his satisfaction with the company’s performance and stated that the company remains committed to providing value to its shareholders. He said, “We are pleased to announce a high dividend payout for our shareholders, which reflects our commitment to delivering sustainable returns. Despite the challenges posed by the pandemic, we have remained focused on our growth strategy and have continued to strengthen our position as a leading financial institution.”
The company’s efforts to finance renewable energy projects have been particularly noteworthy, with PFC providing funding to several large-scale solar and wind energy projects in India. The company has also been exploring new opportunities in the electric vehicle and energy storage sectors, which are expected to drive future growth in the energy sector. As part of its commitment to improving infrastructure, PFC has also undertaken various projects for the modernisation of existing transmission and distribution networks. In addition, the company has invested in developing new technologies that can reduce energy losses and improve network efficiency.
PFC’s strong financial performance has also allowed the company to maintain its credit rating, which is a testament to its strong financial management practices. The company has a long-term credit rating of AAA from CRISIL, indicating that it has the highest degree of safety regarding timely payment of interest and principal on its debt obligations. The company also has access to capital from multiple sources, which allows it to finance its growth plans. PFC is committed to providing quality services and meeting the needs of their customers. They strive to innovate and expand their portfolio to cater to a wide variety of clients. Through strong financial performance, customer satisfaction and innovative solutions, PFC stands out as one of the top financial service providers in India.
PFC is also committed to adhering to strong corporate governance and compliance standards. They have an extensive compliance program in place that ensures adherence to all regulatory and industry best practices.
In conclusion, Power Finance Corporation (PFC) has declared a high dividend payout for the fiscal year 2022-23, surpassing the returns offered by popular investment options such as PPF, EPF, and bank FDs. The company’s strong financial performance in the last fiscal year has allowed it to provide value to its shareholders, who have welcomed the announcement. PFC’s focus on financing renewable energy projects and its efforts to diversify its lending portfolio have been key drivers of its growth, and the company remains committed to delivering sustainable returns in the future.
