PFC recently approved around Rs 20,000 crores loan to SP Group which Independent directors have questioned this loan on many counts, firstly, it’s for infrastructure business which is non-core to PFC, being a lender in the energy sector.
Secondly, independent directors question why the loan is approved with only 1.75 times collateral to the loan amount. Earlier, SP Group’s loan was under consideration with its shares in Tata Sons as collateral which has been changed to a land parcel in Mumbai.
Additionally, independent directors have also raised questions on the loan being used to repay SP Group’s foreign lenders as a bail out from default.
The terms of the loan include a moratorium on the principal amount for 4 years.
An independent director on condition of anonymity shared that these issues will be discussed in the result board meeting.
Power Finance Corporation has not offered a comment to CNBC-TV18’s story.
Shares of PFC are currently trading 5.6% lower at ₹496.75. The stock is up 25% so far in 2024.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.