State-run REC reported an 8 per cent Y-o-Y growth in its consolidated net profit at ₹2,454.16 crore in April-June quarter of the current financial year. On a sequential basis, net profit was higher by 6.6 per cent.
The NBFC’s consolidated total income was almost flat on an annual basis at ₹9,506.06 crore in Q1 FY23 from ₹9,555.45 crore. On a quarter-on-quarter basis, the company’s total income fell 1.5 per cent.
The Board of Directors approved a proposal to raise funds through issue of unsecured/ secured non-convertible bonds/ debentures through private placement, up to an amount of ₹75,000 crore, in one or more tranches, subject to approval of shareholders in this regard in the ensuing Annual General Meeting (AGM), the company said in a stock exchange filing.
“With revival of the economy and impetus of the government, REC has been able to sanction new projects worth ₹59,895 crore in Q1 FY23. With a healthy disbursement of ₹12,442 crore during Q1FY23, REC’s loan book has increased to ₹3.88 lakh crore as of June 30, 2022,” REC said in a statement.
With sound asset resolution and strong project monitoring, the net credit-impaired assets have reduced to 1.41 per cent as on June 30, 2022, with the provision coverage ratio of 68.08 per cent, it added.
With a strong order book and capital adequacy of 24.78 per cent as at June 30, 2022, the company has sufficient cushion and ample opportunities to support the future growth, it said.