Power Finance Corporation (PFC) today reported a 39% decline in net profit at Rs 980 crore in 2004-05 as against Rs 1,606.99 crore in FY04, mainly due to the change in accounting policy in respect of loans from cash to accrual basis.The corporation is also hoping to raise equity by up to 10% through an initial public offer (IPO) in the current fiscal. PFC is hoping to garner over Rs 1,000 crore via the IPO.The corporation disbursed Rs 9,405 crore in FY05 as against Rs 8,974 crore in the previous fiscal.In a major shift in policy of financing state sector projects, PFC sanctioned loans to 10 private projects amounting to Rs 4,181 crore, which include loans to Nagarjuna group (1,015 MW), Lanco (300 MW) and Jindal Power (500 MW), Arvind Jadhav, CMD of PFC, said, adding that total sanctioned loans in FY05 stood at Rs 18,573 crore.
