Shocking Performance

PFC: Worst Asset Quality

1) Gnpa 30718 cr vs 7520 cr  *13% vs 3.03%*

2) _Net NPA 11%_

3)SLIPPAGES during year *whopping 23000 cr which 10% of Loan book*

4) PROVISION COVERAGE RATIO: *Only 20%*. In Finance sector, normally it is 50%

5) STANDARD RESTRUCTURED ASSETS: 55439 cr *22% of loan book*

Situation may worsen as some borrowers in Standard Restructured Assets may be down graded due to stress

a) Rating downgrade possible

b) Borrowing Cost can go up

c) Capital Adequacy under pressure

d) Focus will divert from growth to recovery of NPAs

Stock can be 100-110