PFC, REC asset quality to improve: Deutsche Bank
Deutsche Bank expects asset quality of Rural Electrification Corp (REC) and Power Finance Corp Ltd (PFC), lenders to the power sector, to improve after the government’s directive to Coal India to sign fuel supply agreements with power producers.
“This is another positive and important reform in the power sector with independent power producers (IPPs) benefitting more. This should help in assuaging concerns surrounding asset quality of power sector exposure of Indian financiers,” Deutsche Bank said.
At 3.13 p.m, PFC was up 3.12 percent at 220 rupees and REC 2.6 percent at 247.90 rupees.