The Competition Commission of India has approved the proposed merger of Rural Electrification Corporation's (REC) with Power Finance Corporation (PFC) on Monday.

PFC CMD Rajiv Sharma said that the firm will fund the deal with REC through debt and repayments from its existing assets.

"There is complete synergy in the PFC-REC merger," Sharma said.

When asked about Q3 numbers, Sharma said, “Q3 loan growth has been 14 percent and it will continue to grow like that because our share in renewable space is increasing, it has to further increase.”

The capital adequacy has increased to 19 percent in Q3 of FY19 and PFC is working to increase it, Sharma added.

State-run PFC reported a 70 percent jump in standalone net profit to Rs 2,075.84 crore for the December 2018 quarter, mainly on account of higher revenues. Its standalone net profit was Rs 1,216.94 crore in the corresponding quarter a year ago, the company said in a statement.