REC Limited has reported a ₹ 2,197.14 crore consolidated net profit for the second quarter of financial year 2020-2021. This is 66 per cent higher than the ₹ 1,322.47 crore consolidated net profit reported by the company in the same period of the last financial year. The company said that it is the highest ever quarterly profit reported by REC.
The REC Board has also recommended an interim dividend of ₹ 6 per equity share of ₹ 10 each for the Financial Year 2020-2021. The record date for such interim dividend has been fixed at 17th November 2020.
Consolidated total income for the quarter under review stood at ₹ 8,822.10 crore. This is 15 per cent up from the ₹ 7,659.30 crore consolidated total income reported by the company in the second quarter of the previous fiscal.
“The loan book has reflected a growth of 16 per cent while growing from ₹ 3.01 lakh crore as on September 30, 2019 to ₹ 3.49 lakh crore on September 30, 2020. The Capital Adequacy Ratio of the Company has also improved sequentially to 18.35 per cent as on September 30, 2020 which will help in sustaining the growth momentum for the Company,” an official statement said.
“With no incremental slippages and sustained trend of resolutions, the Net Credit-impaired assets have reduced to 2.04 per cent as on September 30, 2020, as against 2.88 per cent as on June 30, 2020. The Provisioning Coverage Ratio of the Company has also improved to 60.94 per cent as on September 30, 2020, as against 52.89 per cent during the first quarter of financial year 2020-2021,” the statement added.
REC Limited is a Navratna Non-Banking Finance Company focusing on Power Sector Financing and Development across the country.