The Board of Directors of Power Finance Corporation (PFC) met on March 17, 2026, to approve the fundraising plan for the Financial Year 2026-27. The total borrowing limit authorized is ₹1,60,000 crore across various instruments. Additionally, the Board declared a fourth interim dividend of ₹3.25 per equity share (32.50% on the face value of ₹10) for FY 2025-26, with March 23, 2026 set as the Record Date.
PFC Finalizes FY27 Resource Mobilization Strategy
Power Finance Corporation Ltd. (PFC) announced the key outcomes of its Board Meeting held on March 17, 2026. The primary approval was for raising resources to meet funding requirements during the Financial Year 2026-27 from both domestic and international markets.
The total authorized limit for raising funds, excluding funds raised under Extra Budgetary Resource (EBR), is ₹1,60,000 crore. This limit is subject to shareholder approval under Section 180(1)(c) of the Companies Act, 2013.
Detailed Borrowing Allocation (FY 2026-27)
The total authorized limit of ₹1,60,000 crore is broken down across Long/Medium Term and Short Term borrowings:
Long/Medium Term Borrowings (Total: ₹1,40,000 Crore)
The majority of the funds will be raised through domestic currency borrowings via instruments like Capital Gain Bonds, Public Issues/Private Placements of Taxable/Tax Free bonds, and Term Loans. The maximum allocation for these instruments is set at ₹1,10,000 crore.
In Foreign Currency Borrowings, the maximum limit set is $20,000* crore (equivalent to approximately USD 2.21 Billion at the stated exchange rate). This portion covers syndicated loans, FCNR(B) loans, and various bond issuances.
Short Term Borrowings (Total: ₹20,000 Crore)
Short-term financing is capped at ₹20,000 crore, sourced via Domestic Currency Short Term Loans/ICDs, Foreign Currency Borrowings (like FCNR(B) loans), and Commercial Paper, which has a maximum allocation of ₹10,000 crore.
The Board also authorized the Chairman & Managing Director to interchange amounts between the different borrowing sources, provided the overall limit approved by the Board remains intact.
Declaration of Fourth Interim Dividend
The Board declared the fourth interim dividend for the Financial Year 2025-26:
- Dividend Rate: ₹3.25/- per equity share (which equates to 32.50% on the face value of ₹10 per share).
- Record Date: Monday, March 23, 2026, will be used to ascertain eligible shareholders.
- Payment Date: The dividend payment is scheduled to be completed on or before April 16, 2026.
PFC noted that dividend payments are now restricted solely to electronic modes, withdrawing the previous facility of issuing physical instruments like cheques.
Source: BSE
