REC Limited reports highest ever loan sanctions in FY24, disbursements rise over 66% YoY
Upstox
2 min read • Updated: April 8, 2024, 5:44 PM
Summary
REC Limited reported its highest ever loan sanctions at over ₹3.58 lakh crore for the financial year ending March 31, 2024, up 33.66% compared to more than ₹2.68 crore in the preceding fiscal. Loan disbursements stood at over ₹1.61 lakh crore, up 66.72% YoY.
State-owned REC Limited has reported its highest ever growth in loan sanctions and disbursements for the financial year ending March 31, 2024 (FY24).
In its business updates released on April 8 for the quarter and financial year ending March 31, 2024, the company informed the stock exchanges that its loan sanctions stood at ₹3,58,816 crore in FY24 compared to ₹2,68,461 crore in FY23. The total loan sanctions for FY24 increased 33.66% year-on-year.
The public sector undertaking (PSU) reported 66.72% YoY growth in loan disbursements at ₹1,61,462 crore for the financial year 2023-24, compared to ₹96,846 crore in the preceding financial year.
REC Limited’s shares opened at ₹472.45, marginally above its previous closing price of ₹471.6 apiece on the NSE. The stock dropped further up to 4.02% to a low of ₹452.6 apiece intraday as the company missed its FY24 guidance for loan book. However, the stock recovered some losses and closed at ₹454.15 apiece, down 3.7%, on the NSE.
The Power Ministry PSU’s loan book stood at ₹5,09,545 crore in FY24, up 17.13% compared to ₹4,35,012 core in the previous financial year. However, the loan book was marginally lower than the FY24 guidance of ₹5.1 lakh crore.
The company also reported a robust 538.79% growth in sanctions for renewable energy projects in FY24. Total sanctions for renewable energy projects stood at over ₹1.36 lakh crore compared to 21,371 crore in FY23.
In another exchange filing on April 5, REC Limited announced that its wholly-owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL), has completed the transfer of its entire shareholding in two subsidiaries.
The transfers included 50,000 equity shares of each subsidiary, along with all associated assets and liabilities. The shareholding of Kallam Transco Limited was allocated to the consortium of Indigrid 2 Limited and Indigrid 1 Limited, while Jalpura Khurja Power was transferred to the Tata Power Company Limited.