IREDA records highest loan sanction and disbursement
This has led to a significant growth of 26.71% in the loan book, which now stands at Rs 59,650 crores.
The Board of Directors of REC Limited on Thursday approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2023.
REC Limited is an NBFC focusing on power sector financing and development across India. It provides financial assistance to complete the power sector value chain; for various types of projects including generation, transmission, distribution and renewable energy.
Owing to the improved asset quality and resolution of stressed assets, REC recorded the highest ever quarterly and yearly profit at Rs 3,001 crore and Rs 11,055 crore respectively. As a result, the Earnings Per Share for the year ended March 31, 2023 stands at Rs 41.86 per share as against Rs 38.02 per share as of March 31, 2022. The return on net-worth during the year was 20.23 per cent.
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Aided by growth in profits, the net worth has grown to Rs 57,680 crore as on March 31, 2023, an increase of 13 per cent YoY. The loan book has maintained its growth trajectory and has increased by 13 per cent to Rs 4.35 lakh crore as against Rs 3.85 lakh crore as on March 31, 2022.
Signifying improving asset quality, the net credit-impaired assets have reduced to 1.01 per cent with Provision Coverage Ratio of 70.64 per cent on NPA assets, as on March 31, 2023. During the year 2022-23, no new NPAs were added.
The Capital Adequacy Ratio of the company stands at a comfortable 25.78 per cent as on March 31, 2023, implying ample opportunity to support future growth.
The company’s foray into the Non-Power Infrastructure sector aided its growth and development with sanctions of Rs 85,735 crore coming from the infrastructure and logistics segment. In line with the government of India’s focus, the company continues to grow its Renewable business with sanctions of Rs 21,371 crore in this segment.
The Government of India has set an ambitious target of installation of 500 GW of renewable energy capacity by 2030. REC, being a key player in financing of energy sector projects, has taken various initiatives towards accelerating the pace of implementation of renewable energy Projects in India and thereby helping the country achieve its target of installation of 500 GW of RE capacity by 2030.
In addition to the conventional RE Projects like solar and wind projects, REC has ventured into financing of Hybrid projects, E-Vehicle Projects, Pumped Storage Projects, manufacturing of Solar modules, etc.
Financing opportunities for sunrise sectors like Green Hydrogen, Green Ammonia, as well as round the clock (RTC) power projects involving bundling of renewable projects with thermal power and many others including ethanol manufacturing projects are being explored.
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