REC

“And I think the growth that we have set out for ourselves should hold for us at least in the short-term.”

“Apart from this, we have a committed order book of close to INR2.5 lakh crores. So I don't see quarter 3 and quarter 4 being less than quarter 1 and quarter 2, and I am saying this very conservatively.”

“And recently, we also won another project of NTPC Meja, wherein we will disburse about INR27,000 crores, probably with Power Finance Corporation. If we join Power Finance Corporation, half of the disbursement would be from our side.”

“Last year, we had sanctioned INR4.09 lakh crores, and we have a committed scope of INR2.56 lakh crores as of now. During the current financial year, we have done INR1.12 lakh crores.”

“40% of our disbursement, the loan assets are under the documentation, so that is going to help us, and in H2, we will be able to make up.”

“But overall in the financial year, in the H2, we are hoping to make up because we have the sufficient committed balance with us in kitty, the sanctioned commitment.”

“So we have availability with target of some 30% equity and 70% debt component, we are targeting somewhere around INR1.8 lakh crores to INR2.2 lakh crores by 2031-32.”

“These all thermal projects come with a gestation period of 5 to 7 years, so that the moratorium would be somewhere around 5-plus years”

“Because our transmission profile is as of now around just little over 7% of INR45,000 crores, there also we have we are targeting a major chunk.”

“Our RE portfolio loan book stands at close to INR86,000 crores, which is 27% increase over last year.”

“I am confident that the prepayments scenario has peaked out, and now that we are entering increasing interest rate cycle, I don't think prepayments will be a major issue for us.”

“There are limits even though they have excess liquidity right now, but they have sectoral limits, so they will not be able to lend beyond a point.”

“You will have noticed that the Cabinet has also come out with a very unique INR23,000 crores biogas plan, and that comes under the core structure of infrastructure and that is one area where we are very keenly watching as to what are the business opportunities there.”

“So all in all, I don't see growth dampening in any way, and we are confident that our strong financial credentials, our deep pockets, our ability to lend long-term will keep us as a preferred lender choice.”

“If we go by that, we are looking at funding opportunities close to the tune of over INR100 lakh crores over the next few years.”

“And consequently, due to the competition as well as the derisking of the sector, our net interest margins have come down slightly.”

“There will be pressure on my NIMs, but you should take recourse to the fact that we are trying to ensure that our NIMs stay as high as possible.”

“Almost 25% of our loan book is also floating nature, where that increased cost would be compensated. So as far as PAT is concerned, we don't see any like, pressure.”

“If anything would happen, there would be some positive impact on our borrowing cost also. I don't think there would be any pressure on cost of borrowing.”

“So we don't think there would be much downside in the yield. Otherwise also, we are very hopeful that our yield would be slightly improved in view of the sector facing interest rate pressure.”

“So our INR term loan and few of ECBs are of floating of nature, which is about 24%.”

“Similarly, this year also we are trying to do new things, like we are requesting Ministry of Finance for withholding tax exemption on our ECB. We are also trying to have green bond basket mandate from Ministry of Finance.”

“Last year, we have done a zero-coupon bond, wherein we got concession of about 100 basis point.”

“we are comfortably placed at 24.04% against the RBI requirement of 15%.”

“On the outstanding borrowing front, the borrowings of REC has reached to INR5.27 lakh crores, which is a growth of 4% from 31st of March 2026.”

“REC has successfully launched India's first pilot issuance of tokenized corporate bonds under the SEBI regulatory sandbox framework.”

“So as you are aware that both the Boards have passed a merger resolution and REC will get absorbed into PFC. And this has received NOC from RBI as well as from the stock exchanges.”

“The draft merger scheme is currently pending Cabinet approval, so it would not be proper for me to say things which are directly linked to the Cabinet approval.”

“But yes, the precondition for the entire merger is that the merged entity will remain a government company, and I think that will be maintained.”

“See, like I said, a loan book of INR12 lakh crores with the dominance of being the single power financier, you must understand that power is a long-term game.”

“Yes to all of the above.”

“In the current year also, we have declared a total dividend of INR7.75, which includes INR3.5 dividend which has been declared for the quarter 2.”

“we continuously maintain the 30% dividend payout ratio as mandated by the Government of India.”

“Last year, we paid a dividend of INR18.55 over the face value of INR10.”

“So as far as forex losses are concerned, we have already taken hit for forex liability and we don't see any new major hit on forex part.”

“The major loan documented, the major projects, not able to materialize in terms of documentation. And with the stiff peer competitions and all, the disbursement has come down.”

“But ultimately, we have already enhanced our forex hedging towards more than INR96 per dollar.”

“And especially something which increases your electricity bill or which gives an impression that your electricity bill is increasing will face some resistance.”

“So almost 80% of our ECL is reserve.”

“So we don't see like something abnormal in ECL or credit cost.”

“But in spite of record disbursements, we could not show more than a 3% growth in loan book. The main reason for that was our prepayments. The prepayments last year totaled close to INR1 lakh crores.”

“However, if you will notice this year, our prepayments in the first 2 quarters have come down to only INR19,000 crores.”

“In this quarter, our loan growth is about INR26,000 crores, so almost INR300 crores additional ECL has been provided.”

“our gross credit-impaired assets have come down to 0.22% and the net credit-impaired assets have come down to 0.11%”

“The Stage 2 assets have come down by almost 4x, from INR12,350 crores as at 30th of June and has come down to INR3,235 crores”