{"id":75707,"date":"2019-06-03T03:45:02","date_gmt":"2019-06-03T03:45:02","guid":{"rendered":"https:\/\/www.edristi.in\/?p=75707"},"modified":"2019-06-03T03:45:03","modified_gmt":"2019-06-03T03:45:03","slug":"pfc-rec-mega-deal","status":"publish","type":"post","link":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/pfc-rec-mega-deal\/","title":{"rendered":"PFC-REC Mega Deal"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Question: Incorporated on July 16th, 1986, Power Finance Corporation Ltd. is?<br> (a) Navaratna CPSE<br> (b) Maharatna CPSE<br> (c) Non-Banking Financial Corporation<br> (d) Both (a) and (c)<br> Answer: (d)<br> Related facts:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>State-Owned power sector Financier Power Financier Corporation (PFC) completed its Mega Deal to buy majority stake in Rural Electrification Corporation Limited (REC Ltd.) on 28th March, 2019. <\/li><li>PFC paid Rs 14,500 crore to the Government to buy a 52.63% stake in REC.<\/li><li>This deal helped the Government exceed its disinvestment target of Rs. 80,000 crore for the FY 2018-19.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Benefits:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The PFC-REC merger deal, to be completed by next year, can potentially help in faster resolving of power sector NPAs.<\/li><li>PFC has financed 70 % of the deal through cash inflows from the business and the balance 30 % is via debt instruments.<\/li><li>PFCs asset book, income and profit would be nearly doubled.<\/li><li>Post the deal, the company\u2019s consolidated annual income would be about Rs. 50,000 crore and annual profit about Rs. 11,000 crore.<\/li><li>Merger would make PFC India\u2019s second largest state-owned financial firm by market capitalization after SBI.<\/li><li>PFCs strategic importance to the Government will further increase upon completion of the acquisition as the combined entity will become the biggest non-bank finance entity in which the government holds a controlling stake.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Links:<br><a href=\"https:\/\/www.businesstoday.in\/current\/corporate\/pfc-completes-rec-acquisition-pays-rs-14500-crore-to-government\/story\/331910.html\">https:\/\/www.businesstoday.in\/current\/corporate\/pfc-completes-rec-acquisition-pays-rs-14500-crore-to-government\/story\/331910.html<br><\/a><a href=\"https:\/\/economictimes.indiatimes.com\/industry\/banking\/finance\/pfc-completes-rec-acquisition-hopeful-of-merger-in-2019-20\/articleshow\/68617026.cms?from=mdr\">https:\/\/economictimes.indiatimes.com\/industry\/banking\/finance\/pfc-completes-rec-acquisition-hopeful-of-merger-in-2019-20\/articleshow\/68617026.cms?from=mdr<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question: Incorporated on July 16th, 1986, Power Finance Corporation Ltd. is? (a) Navaratna CPSE (b) Maharatna CPSE (c) Non-Banking Financial Corporation (d) Both (a) and (c) Answer: (d) Related facts: State-Owned power sector Financier Power Financier Corporation (PFC) completed its Mega Deal to buy majority stake in Rural Electrification Corporation Limited (REC Ltd.) on 28th [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":75708,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[546],"tags":[475],"class_list":["post-75707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en","tag-treaty-agreement"],"_links":{"self":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/posts\/75707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/comments?post=75707"}],"version-history":[{"count":0,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/posts\/75707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/media\/75708"}],"wp:attachment":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/media?parent=75707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/categories?post=75707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/tags?post=75707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}