Rural Electrification Corporation has reported a ₹1,468.70-crore net profit for the first quarter of financial year 2018-2019. This is 37 per cent higher than the ₹1,075.96-crore profit for the same quarter of financial year 2017-18.
Total income during the quarter has been ₹6,319 crore against ₹5,628 crore in the same quarter of financial year 2017-2018.
A company statement said, “In spite of the challenging business environment, the loan book of the company has shown a healthy increase of 16 per cent and has grown to ₹2.42 lakh crore as on June 30, 2018, as against ₹2.08 lakh crore as on at June 30, 2017.”
“Considering the paradigm shift in the loan provisioning methodology under the Indian Accounting Standards, the Expected Credit Loss evaluation & calculation was undertaken through an independent agency, IRR Advisory Services Pvt. Ltd., a Fitch Ratings Group Company,” the statement said.
“Consequent to the implementation of ECL methodology, the Provision Coverage Ratio against the credit-impaired assets has improved to 47.41 per cent as on June 30.
Net NPA levels have also fallen to 4.27 per cent in the first quarter of financial year 2018-19 from 5.68 per cent as per IGAAP in the fourth quarter of financial year 2017-2018. Further, there are no indications of credit impairment in the loans to government sector, forming 86 per cent of the loan book,” it added.