Rural Electrification Corporation (REC) posted a weak set of earnings in Q2 with a bit of downtrend in the net interest margins (NIMs) coming in at the lowest level in many years.
In an interview to CNBC-TV18, PV Ramesh, CMD of REC spoke about the results and his outlook for the company.
REC continues to grow both in terms of sanctions and disbursements and there is a robust growth of 10 percent in loan book.
He further said that the purpose is to provide finance at a fairly competitive rate to the power sector development because there is so much that needs to be done, the investment needs are highs.
Overall REC continues to maintain profitability and growth momentum, he added.
Therefore, in terms of both sanctions and disbursements the growth momentum continues, which also shows the demand for investment in power sector, said Ramesh.
According to him, government's Saubhagya scheme (Pradhan Mantri Sahaj Bijli Har Ghar Yojana) will aid in growth going ahead.
Watch accompanying video for more details.
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