REC net up 60 per cent

Rural Electrification Corporation (REC), the state-owned power sector financier, posted a 60 per cent rise in net profit for the quarter ended September 2009 on the back of higher loan disbursements. The company recorded a net profit of Rs 494.3 crore in the three months ended September, compared with Rs 308.7 crore posted in the corresponding period last year.

“The higher profit is mainly attributed to the 15 per cent increase in our disbursements in the quarter. Also, we have been able to maintain our spreads in this quarter at 3.35 per cent,” CMD P Uma Shankar said.

REC disbursed loans worth Rs 5,504 crore in the quarter ended September 2009 against loans of Rs 4,761 crore disbursed in the corresponding quarter last year.