Satnam Singh, Managing Director of Power Finance Corp (PFC) plans to buy a substantial stake in a public sector unit (PSU) bank that would allow it to have a representation at the board level.
A month ago, PFC informed its intention to acquire stake in state-run bank to the power and the finance ministries.
Indian power utilities have struggled to build new plants, as projects get mired in red tape or suffer acute supply shortages of coal or gas.
Further, the financier of power projects plans to set up a $300 million private equity fund jointly with Tata Capital. IIn the course of time, the company plans to raise the corpus to $1 billion.
Meanwhile, net profit of PFC rose 58.19 percent during Jan-Mar 2013 from the year-ago period.