Power Finance Corporation Ltd.

Power Finance Corporation (PFC) is planning to apply for a bank licence, as the company meets the norms for setting up commercial bank which were issued by Reserve Bank of India (RBI) last week. In this regard, the state-run lending agency will discuss the matter in its next board meeting.

According to the new guidelines issued by RBI on Friday last week, both private and public sector entities will be eligible to set up a bank through a wholly-owned non-operative financial holding company (NOFHC).

PFC was set up in July 1986 as a financial institution for the development of power and its associated sectors. It provides large range of financial products and services like project term loan, lease financing, direct discounting of bills, short term loan, and consultancy services for various power projects in generation, transmission, distribution sector as well as for renovation and modernization of existing power projects.