PTC India Financial Services (PFS) will undergo several management-level changes as the company steers towards an operational overhaul and new phase of growth, Mahendra Lodha, the company’s interim chief executive officer and managing director, said.
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In an interview, Lodha, who is also director of finance and chief financial officer, said PFS is looking at strengthening its team, including senior management. A new chief compliance officer and executive director for monitoring, disbursement and operations have also been appointed, who will soon join, he added. “The company is looking to appoint a whole-time director for operations for the first time."
The move comes amid several challenges. In June, following a directive from the Reserve Bank of India (RBI), PFS’ board sent then MD and CEO Pawan Singh on leave till his superannuation in October amid persistent allegations of corporate misgovernance. Subsequently, Lodha was given additional charge as the CEO and MD.
On 27 June, the Registrar of Companies, Delhi and Haryana, penalized PFS and Singh for allegedly defaulting on a functional nomination and remuneration panel in a state-run company as was required under the law.
Late last year, former secretary in the finance ministry Sushma Nath; the former principal chief commissioner of income tax, Mumbai, Devendra Swaroop Saksena; and Jayant Purushottam Gokhale, founder of Gokhale and Sathe, resigned from its board. The independent directors on the board of its parent company PTC India had also raised concerns over governance in PFS.
Lodha said after the initial allegations in January 2022, a forensic audit was carried out, but it did not find any wrongdoing, “fraud or diversion of funds". And the RBI directive to send the CEO on leave brings about a clean slate for the company, he added.
“Now, there is a fully functional board with eminent independent directors and the company is strengthening its team including senior management. A lot of recruitment has been done and the process is underway to recruit more in senior management positions. So, we are strengthening the whole team," Lodha said.
PFS has adequate liquidity of Rs453 crore, including high-quality liquid assets, he added.
“This is the time to grow. Everything is in place and stabilized," Lodha said. The company is looking at expanding and diversifying its loan portfolio. It is also exploring opportunities to fund various sectors, including electric mobility, renewable power, road infrastructure projects and waste management, among others. Lodha said the target is to offer a “one-stop solution" for infrastructure projects.
The PFS loanbook stands at over Rs7,400 crore. The firm aims to significantly increase it in FY24, for which it is looking to secure debt of Rs2,000-3,000 crore in the next two-three quarters.
The non-bank financial company is reaching out to overseas financial institutions too for raising the debt, Lodha said.
The executive said PFS would also look at “significantly reducing" its non-performing assets in the ongoing quarter, which currently stand at around 4%. He said that about two or three major stressed assets which are in the final stages of resolution may be resolved in this quarter (July-September).
PFS reported a net profit of Rs36.76 crore for the first quarter of this fiscal compared with Rs50.56 crore in the same period last year. Source
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