NBFC REC posts 21% increase in Q1 profit, gross NPA falls to 4.44%

Leading power sector non-banking financial company (NBFC) REC Limited posted a 21 per cent increase in its quarterly profit to touch Rs 2961 crore during Q1FY24.
 
The company said it is the highest ever quarterly profit as compared to corresponding period in the previous financial year.
 
As compared to last quarter, the profit has slipped marginally by 1 per cent.
 
The company said the growth in the profit is on the back of an increase in interest income on loan assets.
 
The company management said the net NPAs has fallen to 0.91 per cent of the loan portfolio and gross NPA has come down to 4.44 per cent.
 
“The company has not added any new NPA in the last six quarters. We would be a net zero NPA company by 2025,” said Vivek Dewangan, chairman and managing director, REC Limited.
 
REC recently signed MoUs worth Rs 2.85 trillion during the G20 Energy Transition Ministerial with close to 25 renewable energy companies to lend for clean energy projects.
 
Dewangan said renewable energy will account for 30 per cent of the company's loan portfolio by 2030.