PTC India Financial Services plans to focus on lending to the renewable energy sector and ensure that the sector accounts for 50 per cent of its total exposure by March 2016, up from the current 38 per cent.
“One of the reasons for the focus on the renewable energy sector is that the huge variety of options possible in terms of lending to the projects. From one MW to 50 MW, the projects are of different sizes. More importantly, such projects achieve financial closure very quickly and are set up fast,” said RM Malla, Managing Director and Chief Executive Officer, PTC India Financial Services.
The non-banking financial company is promoted by PTC India Ltd and key shareholders include Macquarie Bank. Till December 31, 2014, the company has sanctioned loans of ₹12,449 crore, of which, ₹4,996 crore has been granted to the renewable energy sector. In comparison, loans sanctioned for the thermal power sector stand at ₹3,981 crore.
While the company has seen its latest quarterly profit nearly halved, it expects a rebound soon. In the third quarter of 2014-15 the company’s net profit fell 49 per cent to ₹54.81 crore against ₹106.90 crore in the same quarter last year. Its total income grew at only 5 per cent to ₹212 crore from ₹ 201 crore last year.
“To make it easier for renewable energy developers to borrow we have now started offering the option of providing loans at a 75:25 debt-to-equity ratio. We have brought down the repayment cycle to 16-17 years,” Malla added.
He admits that interest for lending in the form of both debt and equity to the renewable energy sector is high. “A lot of international equity and global funds are setting up their own activities here. But since we have a first movers advantage it should help us,” said Malla.
PTC India Financial Services had also made a commitment to finance 6,000 MW of renewable energy projects at the recently concluded global investor meet Re-Invest 2015.