State-run power projects financing company Rural Electrification Corporation's (REC) July-September quarter profit is likely to increase 4.7 percent year-on-year to Rs 1,571.3 crore, according to analysts polled by CNBC-TV18. It will announce earnings on November 9.
Net interest income may increase 18.5 percent to Rs 2,407 crore during the quarter compared to Rs 2,032 crore in same quarter last fiscal.
Loan growth and disbursements are likely to remain steady on yearly basis. Analysts expect loan growth around 15-20 percent.
According to them, net interest margin could see 8-10 basis points moderation, which has been maintained around 5 percent.
Asset quality will remain a key factor to watch out for during the quarter as it has been largely healthy in previous quarters. Gross non-performing assets (NPA) were at 0.9 percent in Q1FY16 against 0.7 percent in preceding quarter and it had declared Rs 240 crore of NPAs in June quarter.
Provisions will also be watched as REC had ramped up provisions on incremental standard assets to 0.3 percent in Q1FY16 against 0.25 percent in Q4FY15.
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