Public infrastructure finance company REC Limited recorded a total income of ₹135.95 billion (~$1.62 billion) for the second quarter (Q2) of the financial year (FY) 2024-25, a 17% year-over-year (YoY) increase.

REC’s net profit for the quarter rose 6% YoY to ₹40.05 billion (~$476.23 million).

REC approved loans totaling ₹762 billion (~$9.06 billion) during the quarter, a 27% decrease YoY. The Distribution sector received the highest share at 38%, followed by Renewables (27%), Generation (24%), and Transmission (8%).

Loan approvals for renewables totaled ₹207.37 billion(~$2.46 billion) a fall of 17% YoY from ₹249.44 billion(~$2.96 billion).

Disbursements for Q2 amounted to ₹473 billion (~$5.63 billion), a 13.71% YoY increase from ₹415.98 billion ($4.94 billion). The majority of disbursements went to the Distribution sector (53%), followed by Generation (14%), Renewables (13%), and Transmission (5%).

Of the total disbursements, renewable energy loans totaled ₹59.5 billion (~$707.69 million), up 37.35% YoY.

REC’s Net Credit Impaired Assets stood at 0.88% during the quarter, indicating improved asset quality and provisioning.

By the end of Q2, REC’s total loan book had grown to ₹5.46 trillion (~$64.91 billion), a 15% YoY increase from Q2 FY 2024.

First Half (1H) FY 2025

REC recorded a total income of ₹266.33 billion (~$3.17 billion) in the first half (1H) FY 2025, an 18% YoY increase.

The company’s net profit rose 11% YoY to ₹74.48 billion (~$885.65 million).

In the first half (1H) FY 2025, REC approved ₹1.89 trillion (~$22.47 billion) in loans, a 3% decrease YoY. Renewables sector was the major beneficiary at 38%, followed by Generation (29%), Distribution (19%), and Transmission (7%).

Total disbursements for 1H reached the highest ever half-yearly amount of ₹910 billion (~$10.82 billion), marking a 20% increase compared to the same period in FY 2024. In 1H 51% of the disbursements were for the distribution segment, and 12% each for renewables and generation, and 4% for transmission.

Renewable energy loans disbursed during 1H grew 92.68% year-on-year to ₹112.97 billion (~$1.34. billion).

The asset quality saw a notable improvement, with Net Credit Impaired Assets at 0.88% for 1H, down from 0.96% YoY, indicating effective credit risk management.

REC’s loan book for the period maintained its growth trajectory, reaching ₹5.46 trillion, a 15% YoY increase.

In September, REC raised $500 million through 5-year green bonds as part of its $10 billion Global Medium-Term Program. The five-year note has a semi-annual coupon rate of 4.75% per annum and matures on September 27, 2029. It is the first US dollar bond issuance from an Indian public sector undertaking in 2024.

In April, REC availed a green loan of ¥60.5 billion (~$387.6 million) from SACE, an Italian export credit agency, to finance a slew of green projects in India.