Government-owned lender Indian Renewable Energy Development Agency (IREDA) approved loans amounting to ₹91.36 billion (~$1.09 billion) in the first quarter of financial year 2024-25, up 382.62% compared to the same period in the previous year.

Loan disbursements also saw substantial growth, rising to ₹53.2 billion (~$638 million), up 67.61% from ₹31.74 billion (~$380 million) last year, according to a filing made to the National Stock Exchange of India and BSE.

Meanwhile, IREDA’s loan book expanded by 33.77% in the quarter to ₹631.5 billion (~$7.56 billion) from ₹472.07 billion (~$5.56 billion) at the end of the corresponding quarter in the previous year.

The state-owned non-banking financial institution extends financial assistance for renewable energy and energy efficiency projects.

IREDA’s strong performance comes when India pushes to increase its renewable energy capacity. The government has set targets for renewable energy installation to achieve 500 GW of non-fossil fuel-based energy capacity by 2030.

The lender’s loan approvals and disbursements reached a record high in FY 2024 when it approved loans amounting to ₹373.54 billion (~$4.48 billion) and disbursed ₹250.89 billion (~$3.01 billion).

Recently, IREDA raised ₹15 billion (~$179.5 million) through bonds, reflecting strong investor confidence in India’s renewable energy sector. The bond issuance, which included a base issue of ₹5 billion (~$59.8 million) and a green shoe option of ₹10 billion (~$119.7 million), received an overwhelming response from investors. The bonds were oversubscribed by 2.65 times.

On the financial front, the company reported a 45.9 % year-over-year increase in profit after tax for the fourth quarter of the FY 2024 to ₹373.76 million (~$4.4 million) from ₹256.16 million (~$3.07 million). The 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.

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 aimed at attracting borrowers under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program, rooftop solar consumers and other B2C segments.