REC has posted its worst performance in 12 quarters with respect to asset quality, net interest margins and spreads. However, balance sheet growth picking up is a positive.
“Loan book has grown about 20 percent, sanctions have grown 28 percent and our disbursements continue to grow and particularly our presence in the renewable segments has improved. We expect a number of assets to become standard during the course of the year and we expect the momentum in terms of business growth to pick up,” said PV Ramesh, CMD of the company.
He added that their exposure to the private sector was less than 14 percent of our loan book.
“Our cost of borrowing has come down to almost 7.5 percent is 60 basis points (bps), lower than compared to what it was last year and then we continue to see that in the future, this would only improve,” said Ramesh.