FAR FROM REALITY:Part1

PFC Concall

In it's concall, PFC has tried it's best to mislead investing community by hiding Negatives, making broad vague statements and being ridiculously optimistic:

Firstly, has any company ever said that NPAs are not recoverable. Every co always comments and remains optimistic for NPA recovery.

Secondly coming to PFC:

Mgtmnt says "80% of NPAs will reverse NEXT YEAR"
Investors getting impression that next year means 2017-18.
We wish to clarify that *NEXT YEAR means 2018-19* Even otherwise, such statement MOST BOLD n Unrealistic statement trying to please analysts.

Shree Maheshwar Hydel  had become NPA where PFC has exposure of 700 crores. It never became Standard. Rather PFC was forced to convert part of loan in Equity and ultimately has taken over the project itself WHICH IS INCOMPLETE WITHOUT ANY BUYERS

As per RBI guidelines *RESTRUCTURED LOANS CANNOT BE UPGRADED AS STANDARD ASSETS FOR ONE YEAR UNTIL ACCOUNT HAS PERFORMED SATISFACTORILY N TERMS OF LOAN COMPLIED WITH*

SO IT IS NOT POSSIBLE THAT RECENTLY RESTRUCTURED LOANS WILL QUALIFY AS STANDARD ASSETS IN CURRENT YEAR

_Rather PFC will have to increase provisioning on restructured assets as time goes by.  On 5784 cr, provisioning has already been increased to 10% from 4.25%_ *On 35995cr provisioning increased from 0.35% to 4.25%. Is there not the possibility that in current year provisioning on 35995cr is increased to 10%*

Wait 30 minutes for Part2

Stock should come down once reality dawns on investing community

We assure of never-before nowhere-else facts and info