REC Limited holds 55th AGM, releases its first sustainability report

Gurugram : The 55th Annual General Meeting (AGM) of the REC Limited was held today through video conferencing. Shri Vivek Kumar Dewangan, Chairman & Managing Director, REC Limited chaired the meeting and was attended by all the Directors on the Board of the Company.

Many shareholders were present at the meeting through Video Conferencing. The requisite quorum being present, the Chairman & Managing Director called the Meeting in order. The Chairman & Managing Director then delivered his speech.

In his speech, Shri Dewangan said, “We saw an exceptional growth in loans sanctioned, which increased to ₹3,58,816 crore in 2023-24, with growth of 34% and highest ever yearly disbursements, reaching a staggering ₹1,61,462 crore, with 67% year-on-year growth. The total income has grown to ₹47,214 crore, up by 20% from the previous year. This is complemented by a net profit of ₹14,019 crore, reflecting a 27% increase year-on-year. The loan book stands robust at ₹5.09 lakh crore, with a growth rate of 17% year-on-year. Additionally, our Capital Adequacy Ratio is 25.82%, well above the minimum requirement of 15%. Further, I’m pleased to report that we have had no new NPAs, over the last 9 quarters.” He added, “We are at the forefront of India’s energy transition, managing ₹38,971 crore in renewable energy loans and aiming to increase this to around 30% of our projected ₹10 lakh crore loan book by 2030.”

On this occasion, the Board of Directors released REC’s first Sustainability Report, aligned with the Global Reporting Initiative (GRI) Universal Standards 2021, which outlines the company’s Environmental, Social, and Governance (ESG) performance.

“We have established and assured a baseline for our carbon footprint, which will help us in planning emission mitigation strategies, eventually leading us to our Net Zero Plan. We are dedicated to achieve operational efficiency, uphold social responsibility, and maintain the highest governance standards as we lead the way in the NBFC sector on our ESG journey,” said Shri Dewangan.

The CMD concluded his address by expressing gratitude to the shareholders for their continued support and confidence in REC Limited.

Link for ESG Report : https://recindia.nic.in/uploads/files/CO-BDM-ESG-Report-2023-24.pdf

ABOUT REC LIMITED

REC is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc. More recently REC Limited has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.

REC Limited provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country. REC Limited continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been given the responsibility of PM Surya Ghar Muft Bijli Yojna from Central Government. The loan book of REC stands at ₹ 5.30 lakh crore and Net Worth at Rs. ₹ 72,351 crore as on 30^th June, 2024.