In his first media interaction as Chairman and Managing Director (CMD) of REC Limited, Jitendra Srivastava (IAS:2000:BH) led the board of directors on Thursday in unveiling the company’s financial results for the March quarter (Q4FY25), reporting a consolidated net profit of Rs. 4,236 crore—marking a 5.5% year-on-year increase from Rs. 4,016 crore.
REC Ltd, a Maharatna public sector enterprise under the Ministry of Power and a leading financial institution in the power sector, saw robust operational growth across parameters. Net interest income (NII) rose sharply by 37.6% YoY to Rs. 5,877 crore in Q4 FY25, compared to Rs. 4,272.5 crore in the same period last year.
The company’s standalone financial performance for Q4 FY25 highlighted:
- Disbursements surged 16% to Rs. 45,538 crore.
- Net profit rose 5% to Rs. 4,236 crore.
- Total income jumped 24% to Rs. 15,174 crore.
- Net interest margin improved slightly to 3.64% from 3.60%.
For the full financial year (12M FY25), REC reported:
- Disbursements of Rs. 1.91 lakh crore, up 18% from Rs. 1.61 lakh crore.
- NII stood at Rs. 19,878 crore, a 27% rise from the previous year.
- Annual net profit increased by 12% to Rs. 15,713 crore.
- Total income rose by 19% to Rs. 55,980 crore.
- Net interest margin expanded to 3.63%.
This strong financial showing has been attributed to increased disbursements, recalibrated interest rates on loan assets, and prudent cost management strategies. Earnings per share (EPS) rose to Rs. 59.55 (annualized) for FY25, compared to Rs. 53.11 the previous year.
The loan book, or Assets Under Management (AUM), maintained its growth trend, reaching Rs. 5.66 lakh crore as on March 31, 2025, up from Rs. 5.09 lakh crore a year earlier. Notably, REC’s net credit-impaired assets fell to 0.38% from 0.86%, following the resolution of five impaired loan accounts totaling ₹6,171 crore.
The company’s net worth increased by 13% year-on-year to Rs. 77,638 crore, while its Capital Adequacy Ratio (CRAR) remained strong at 25.99%, indicating ample room for future expansion.
To reward shareholders, the Board recommended a final dividend of Rs. 2.60 per equity share. Including interim dividends, the total dividend for FY25 amounts to Rs. 18 per share, compared to Rs. 16 in the previous fiscal.
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