Government-owned lender Indian Renewable Energy Development Agency (IREDA) has reported an increase in loan approvals and disbursements for the year ending December 31, 2024.

Loan approvals surged to ₹310.87 billion (~$3.6 billion) as of December 31, 2024, compared to ₹135.58 billion (~$1.58 billion) in the corresponding period of 2023, marking a 129% increase.

Loan disbursements grew by 41%, reaching ₹172.36 billion (~$2 billion) in 2024, up from ₹122.20 billion (~$1.42 billion) in 2023.

The agency’s loan book outstanding stood at ₹690 billion (~$8.04 billion), a 36% growth over the previous year’s ₹505.8 billion (~$5.89 billion).

The sharp rise in loan approvals and disbursements reflects increased demand for financing renewable energy initiatives in the government and private sector.

IREDA reported a profit after tax of ₹3.88 billion (~$46.7 million) during the second quarter (Q2) of FY 2024-25, an increase of 36.18% year-over-year.

The company launched its retail division last year. The division will focus on providing loans in the Business-to-Consumer (B2C) sector. The strategic initiative targets borrowers under the PM-KUSUM program, rooftop solar consumers, and other B2C segments. Upon the division’s launch, IREDA approved its first loan amounting to ₹580 million (~$6.95 million) under Component B of the KUSUM program.

IREDA reported a 45.9 % YoY increase in profit after tax for the fourth quarter of FY 2024 to ₹373.76 million (~$4.4 million) from ₹256.16 million (~$3.07 million).

The company recently invited bids from banks and financial institutions to raise term loans amounting to ¥16 billion(~ $113.3 million) with an additional greenshoe option. The funds will used to lend towards renewable energy, energy efficiency and conservation projects, and renewable energy-allied services.

Earlier, IREDA raised ₹15 billion (~$179.5 million) through bonds, reflecting strong investor confidence in India’s renewable energy sector.