Expect momentum in terms of business growth to pick up, says REC

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.