RURAL ELECTRIFICATION CORPORATION

rec-announces-financial-results-fy-19-20-total-income-increases-by-18-net-interest-income-rises-by-15-

REC announces Financial Results (FY 19-20): Total income increases by 18%, net interest income rises by 15%

The Board of Directors of REC Limited (formerly Rural Electrification Corporation Limited) approved the audited standalone and consolidated financial results for FY 2019-20 on Wednesday.

Operational and Financial Highlights – FY 2020 vs FY 2019

  • Sanctions - Rs. 1,10,908 crore vs. Rs. 1,15,957 crore
  • Disbursements - Rs. 75,667 crore vs. Rs. 72,165 crore, up 5%
  • Total Income – Rs. 29,855 crore vs. Rs. 25,341 crore, up 18%
  • Net Profit – Rs. 4,886 crore vs Rs. 5,764 crore

During the year ended 31st March 2020, the total income of the Company increased by 18% to Rs. 29,855 crore as against Rs. 25,341 crore for the year 2018-19.

The Net Interest Income also posted an increase of 15% to reach Rs. 10,425 crores during the current year. However, in spite of the healthy operational performance, the profits were impacted due to sharp depreciation in the Indian currency during Q4 FY20 owing to the volatility in global financial markets caused by Covid-19 outbreak. This led the Company to end the year with the Net Profit of Rs. 4,886 crores and Earnings Per Share (EPS) of Rs. 24.74.

The loan book has grown by 15% as it increased from Rs. 2.81 lakh crores as at 31st March 2019 to Rs. 3.22 lakh crores as at 31st March 2020. Despite the economic disruptions during the last few days of the financial year, the Company disbursed loans amounting to Rs. 6,474 crores during the period 17th to 31st March 2020, while ending the year with disbursements of Rs. 75,667 crores.

With Capital Adequacy Ratio at 16.06%, the Net Worth of the Company has increased from Rs. 34,303 crores as at 31st March 2019 to Rs. 35,077 crores as on 31st March 2020 with a book value per share of Rs. 178. While the Capital Adequacy Ratio stays comfortably above the regulatory requirement, the Company has also raised subordinated bonds amounting to Rs. 2,000 crores in June 2020 to further cushion the regulatory capital for future business growth.

During the Covid-19 disruptions, the Company extensively leveraged the digital technology for review & monitoring, information-sharing and knowledge management. The strong Information Technology capability coupled with the availability of E-Office and ERP applications through secure Virtual Private Network (VPN) allowed the Company to continue the business operations without any disruptions due to lockdown. While the Company allowed an ‘Opt-in’ policy for a moratorium for the amounts falling due between 1st March 2020 to 31st May 2020, the Company has already recovered more than 78% of the total recoveries of Rs. 9,500 crore due for March 2020.

At the same time, the Company has access to various sources for funding its operations including domestic institutional bonds as well as foreign currency bonds, which enhances the reach of the Company to obtain funds from various geographies including the United States of America and Europe. The Company has been able to raise more than Rs. 20,000 crores post 31st March 2020 from domestic and international markets. This also includes USD 500 Million raised through USD Bonds wherein REC became the first Indian company to successfully raise such bonds during the Covid-19 pandemic on 12th May 2020.

Talking about the impact of Covid-19 on the Company, Sanjeev Kumar Gupta, Chairman & Managing Director and Director (Technical), said, “The World is facing an unprecedented situation in the form of Covid-19. However, considering the Company’s liquidity position and access to diverse sources of funds, we have been able to steer through the challenging times without any pressures. The situation has been under close watch by the management to take prompt actions in the best interest of the Company and the stakeholders in an optimized manner. Several Govt. announcements as Covid-19 relief measures will further improve liquidity position for NBFCs and pave way for power sector reforms.”

18 Jun 2020
s-k-gupta-assumes-additional-charge-as-cmd-rec

S K Gupta assumes additional charge as CMD, REC

The Government of India assigned additional charge of CMD, Rural Electrification Corporation (REC) Limited to Sanjeev Kumar Gupta, Director (Technical) w.e.f. 1st June 2020.

As Director (Technical) of REC Limited since October 16, 2015 he has been instrumental in monitoring the successful implementation of village and household electrification under DDUGJY and Saubhagya, Govt of India programmes.

Since 2010, while in REC, he has contributed immensely to the power sector infrastructure creation in the country by handling REC's Financing portfolio for Conventional and Non-Conventional Energy Projects, Transmission, and Distribution projects. He is also responsible for the Business Development of REC. He holds a Bachelor’s Degree in Electrical Engineering from G.B. Pant University of Agriculture & Technology, Pant Nagar, Uttarakhand.

During his last 37 years of experience in the Indian Power Sector, he has worked in large Hydro Power Projects, Transmission projects and handled several international assignments while serving in Power Grid Corporation of India and NHPC.

16 Jun 2020
rec-announces-financial-results-fy-19-20-total-income-increases-by-18-net-interest-income-rises-by-15-

REC announces Financial Results (FY 19-20): Total income increases by 18%, net interest income rises by 15%

By IndianMandarins 18 Jun 2020

The Board of Directors of REC Limited (formerly Rural Electrification Corporation Limited) approved the audited standalone and consolidated financial results for FY 2019-20 on Wednesday.

Operational and Financial Highlights – FY 2020 vs FY 2019

  • Sanctions - Rs. 1,10,908 crore vs. Rs. 1,15,957 crore
  • Disbursements - Rs. 75,667 crore vs. Rs. 72,165 crore, up 5%
  • Total Income – Rs. 29,855 crore vs. Rs. 25,341 crore, up 18%
  • Net Profit – Rs. 4,886 crore vs Rs. 5,764 crore

During the year ended 31st March 2020, the total income of the Company increased by 18% to Rs. 29,855 crore as against Rs. 25,341 crore for the year 2018-19.

The Net Interest Income also posted an increase of 15% to reach Rs. 10,425 crores during the current year. However, in spite of the healthy operational performance, the profits were impacted due to sharp depreciation in the Indian currency during Q4 FY20 owing to the volatility in global financial markets caused by Covid-19 outbreak. This led the Company to end the year with the Net Profit of Rs. 4,886 crores and Earnings Per Share (EPS) of Rs. 24.74.

The loan book has grown by 15% as it increased from Rs. 2.81 lakh crores as at 31st March 2019 to Rs. 3.22 lakh crores as at 31st March 2020. Despite the economic disruptions during the last few days of the financial year, the Company disbursed loans amounting to Rs. 6,474 crores during the period 17th to 31st March 2020, while ending the year with disbursements of Rs. 75,667 crores.

With Capital Adequacy Ratio at 16.06%, the Net Worth of the Company has increased from Rs. 34,303 crores as at 31st March 2019 to Rs. 35,077 crores as on 31st March 2020 with a book value per share of Rs. 178. While the Capital Adequacy Ratio stays comfortably above the regulatory requirement, the Company has also raised subordinated bonds amounting to Rs. 2,000 crores in June 2020 to further cushion the regulatory capital for future business growth.

During the Covid-19 disruptions, the Company extensively leveraged the digital technology for review & monitoring, information-sharing and knowledge management. The strong Information Technology capability coupled with the availability of E-Office and ERP applications through secure Virtual Private Network (VPN) allowed the Company to continue the business operations without any disruptions due to lockdown. While the Company allowed an ‘Opt-in’ policy for a moratorium for the amounts falling due between 1st March 2020 to 31st May 2020, the Company has already recovered more than 78% of the total recoveries of Rs. 9,500 crore due for March 2020.

At the same time, the Company has access to various sources for funding its operations including domestic institutional bonds as well as foreign currency bonds, which enhances the reach of the Company to obtain funds from various geographies including the United States of America and Europe. The Company has been able to raise more than Rs. 20,000 crores post 31st March 2020 from domestic and international markets. This also includes USD 500 Million raised through USD Bonds wherein REC became the first Indian company to successfully raise such bonds during the Covid-19 pandemic on 12th May 2020.

Talking about the impact of Covid-19 on the Company, Sanjeev Kumar Gupta, Chairman & Managing Director and Director (Technical), said, “The World is facing an unprecedented situation in the form of Covid-19. However, considering the Company’s liquidity position and access to diverse sources of funds, we have been able to steer through the challenging times without any pressures. The situation has been under close watch by the management to take prompt actions in the best interest of the Company and the stakeholders in an optimized manner. Several Govt. announcements as Covid-19 relief measures will further improve liquidity position for NBFCs and pave way for power sector reforms.”

s-k-gupta-assumes-additional-charge-as-cmd-rec

S K Gupta assumes additional charge as CMD, REC

By IndianMandarins 16 Jun 2020

The Government of India assigned additional charge of CMD, Rural Electrification Corporation (REC) Limited to Sanjeev Kumar Gupta, Director (Technical) w.e.f. 1st June 2020.

As Director (Technical) of REC Limited since October 16, 2015 he has been instrumental in monitoring the successful implementation of village and household electrification under DDUGJY and Saubhagya, Govt of India programmes.

Since 2010, while in REC, he has contributed immensely to the power sector infrastructure creation in the country by handling REC's Financing portfolio for Conventional and Non-Conventional Energy Projects, Transmission, and Distribution projects. He is also responsible for the Business Development of REC. He holds a Bachelor’s Degree in Electrical Engineering from G.B. Pant University of Agriculture & Technology, Pant Nagar, Uttarakhand.

During his last 37 years of experience in the Indian Power Sector, he has worked in large Hydro Power Projects, Transmission projects and handled several international assignments while serving in Power Grid Corporation of India and NHPC.

rec-pledges-to-distribute-essentials-packets-to-the-needy

REC pledges to distribute essentials packets to the needy

By IndianMandarins 09 Jun 2020

One of India’s largest power financiers PSU REC Ltd has spearheaded the mission of feeding laborers and the needy through collaborative efforts. REC Foundation, the CSR arm of REC has pledged to distribute 5000 customized packets carrying essentials for laborers and the needy, affected because of lockdown due to pandemic covid-19.

 

These packets contain drinking water bottle, roasted chana, peanuts, mixture, glucose powder, footwear and reusable masks. The first leg of the activity was planned on June 4, 2020 and approximately 500 such packets were distributed among 500 beneficiaries in Delhi. The second leg was successfully completed on June 7 in Gurgaon and Noida where nearly 1000 packets were distributed. The remaining packets will be distributed in the coming days. The distribution of these bags was done by employees of the corporation who volunteered to stand for this social cause.

 

REC Ltd, has also partnered with TajSATS (a joint venture of IHCL and SATS Ltd) to distribute specially-made nutritious meal packets for medical staff in Safdarjung Hospital, New Delhi. Every day, 300 food packets are being delivered as a gesture of gratitude to the frontline healthcare warriors of New Delhi. Over 18,000 meals are being delivered in New Delhi through this initiative.

rec-ltd-raises-500-mn-bonds-first-cross-border-issuance-since-covid-19

REC Ltd raises $500 Mn Bonds; first cross border issuance since COVID-19

By IndianMandarins 13 May 2020

Navratna Central PSU Rural Electrification Corporation (REC Ltd) has opened up the USD markets for Indian issuers in the wake of COVID-19 crisis. With the global lockdown fears receding and liquidity coming back to the Asian markets, REC pulled the trigger and tapped the offshore debt markets on May 12, 2020 making it the first issuer from India since March 5, 2020.

 

The paper was strongly received by investors, with books rapidly crossing $ bn across Asia and Europe. US investors too came in strongly, with REC finally receiving subscription of more than 5 times the actual issue size, through 175 investors. The strong investor demand saw the issuance being upsized from the base size of 300m to 500m. The 3-year issuance was priced at a coupon of 4.75%.

 

The REC paper saw demand from high-quality long term investors and large global fund houses. Asia took the largest allocation at 68%, Europe Middle East & Africa (EMEA) 19%, and US at 13%. In terms of investor type, Fund Managers were allocated 52%, Insurance/PF 23%, Banks 16% and Private Banks 9%. Given the high demand, the issuance priced at nil New Issue Premium (NIP), comparing favorably to other global bond issuers who have had to pay significantly more NIP in recent deals.

 

Ajeet Kumar Agarwal, Chairman and Managing Director, REC Ltd said: “REC has effectively opened up the offshore debt market for other Indian credits to tap into. The strong reception to this deal demonstrates both resilience of the Indian economy among International investors and the high regard for REC’s credit quality.”

rec-choudhury-appointed-as-member-finance-

REC: Choudhury appointed as Member (Finance)

By IndianMandarins 13 Apr 2020

Ajoy Choudhury (ED, REC) to the post of Director (Finance) in the Rural Electrification Corporation, till the date of his superannuation (31 .01.2024) w.e.f. 01.06.2020.

fight-against-covid-19:-rec-foundation-providing-food,-shelter-to-over-36,500-daily-wagers

Fight against COVID-19: REC Foundation providing food, shelter to over 36,500 daily wagers

By IndianMandarins 06 Apr 2020

REC Foundation, the CSR arm of Navratna CPSE REC Ltd under of Ministry of Power, has started distributing cooked food, ration, utility packets, masks, sanitizers and even providing shelter during the lockdown to over 36,500 daily wagers and their families.

 

The Foundation has already released Rs 3.26 crore for these activities and more such funds are already in the pipeline. It is to be mentioned that REC has already donated Rs 150 crore to the PM CARES Fund to support India's fight against coronavirus.

 

REC Foundation in association with respective state-owned power distribution utilities is providing food grain packets and other utility packets like masks and sanitizers. REC has also tied up with Delhi Police to provide 500 ration kits on a daily basis with over 2000 beneficiaries. REC Foundation has also released funds to the offices of Distribution Companies, Collector and/or District Magistrates of various districts across India to provide cooked meals twice a day for 10-30 days.

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REC pledges to donate Rs 150 cr to PM CARES Fund

By IndianMandarins 31 Mar 2020

A Navratna CPSE REC Ltd, the country’s leading financier of the power-sector projects under the Ministry of Power, has pledged to donate Rs 150 crore to PM CARES Fund to support India's fight against coronavirus. REC Ltd’s employees will also voluntarily contribute one day’s salary to PMNRF to aid the Government’s efforts to fight against the Corona Virus.

REC is committed to participating in corporate India’s response to COVID-19 through funds, community welfare plans and through leveraging its expertise to offer assistance. The Navratna company has already rolled out various preventive measures at its Corporate Office and all its Regional offices to protect the employees and their families against the spread of novel coronavirus.

tenure-of-rec-cvo-extended

Tenure of REC CVO extended

By IndianMandarins 28 Feb 2020

The NaMo administration on Friday extended the central deputation tenure of Ms Sunita Singh (IFS:MH:1987) as CVO Rural Electrification Corporation (Delhi) for a period of 2 years beyond 16.03.2020 i.e. upto 16.03.2022.

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