Government-owned lender Indian Renewable Energy Development Agency (IREDA) approved loans amounting to ₹373.54 billion (~$4.48 billion) and disbursed ₹250.89 billion (~$3.01 billion) in loans during the financial year (FY) 2023-24.

The approved and disbursed amounts were the highest-ever annual figures recorded by the lender.

The loan approvals were up 14.63% year-over-year (YoY) from ₹325.87 billion (~$3.91 billion), and the disbursements increased by 15.94% from ₹216.39 billion (~$2.59 billion) at the end of FY 2022-23.

In the fourth quarter of FY24, IREDA approved loans of ₹237.96 billion (~$2.85 billion), up 101.71% YoY. The disbursements for the January to March period increased by 13.98% to ₹128.69 billion (~$1.54 billion),

The company’s loan book saw a 26.71% growth to ₹596.50 billion (~$7.15 billion) at the end of March 2024.

Pradip Kumar Das, Chairman and Managing Director of IREDA, said, “IREDA’s record loan sanctions and disbursements for the financial year 2023-24 underscore our untiring commitment to driving the renewable energy revolution in the country. We are happy to contribute significantly towards Govt. of India’s renewable energy targets and look forward to further amplifying our impact in the coming years.”

In February 2024, the company received approval from the Reserve Bank of India to set up its wholly-owned subsidiary in the International Financial Services Centre situated in GIFT City, Gujarat. The subsidiary is expected to serve as an offshore platform for securing competitive funding to push the growth of the renewable energy sector.

Earlier, IREDA reported a 67% YoY increase in profit after tax for Q3 of FY 2023-24 to ₹3.36 billion (~$40.28 million) from ₹2.01 billion (~$24.1 million). The considerable profit growth was primarily driven by the consistent growth in the company’s loan book and a significant reduction in its net non-performing assets to 1.52% in Q3 from 2.03% in the same period last year, a 25% improvement.

Last year, the company launched its retail division with an emphasis on providing loans in the Business-to-Consumer (B2C) sector. The strategic initiative is expected to target borrowers under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program, as well as rooftop solar consumers and other B2C segments.