Moneycontrol PRO
Upcoming Webinar:Prashant Shah explains ‘Irrelevance of Bull & Bear Markets for Success in Technical Analysis’. Register For Free!

REC Q2 profit seen up 5%; NII, loan growth may be over 15%

Loan growth and disbursements are likely to remain steady on yearly basis. Analysts expect loan growth around 15-20 percent.

November 06, 2015 / 07:02 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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.

Close

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.

first published: Nov 6, 2015 07:02 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark