New Delhi: REC Limited reported a standalone net profit of ₹15,713 crore for the financial year ended March 31, 2025, marking a 12% increase from ₹14,019 crore in the previous fiscal year. The Board of Directors has recommended a final dividend of ₹2.60 per share, bringing the total dividend for FY25 to ₹18 per share, up from ₹16 last year.
Robust disbursements and higher net interest income drove the growth. Disbursements rose 18% year-on-year to ₹1,91,185 crore, while net interest income grew by 27% to ₹19,878 crore. Total income stood at ₹55,980 crore, an increase of 19% over the previous year.
Net interest margin improved slightly to 3.63%, from 3.57% in FY24. REC attributed the improved margins and earnings to growth across all business verticals, repricing of loan assets, and effective management of finance costs.
Earnings per share for the year rose to ₹59.55 from ₹53.11. REC’s loan book expanded to ₹5.66 lakh crore as of March 31, 2025, compared to ₹5.09 lakh crore the previous year. The company also reported a significant decline in net credit-impaired assets to 0.38%, from 0.86%, following the resolution of five stressed accounts worth ₹6,171 crore.
REC’s net worth rose 13% to ₹77,638 crore, while its capital adequacy ratio (CRAR) stood at a healthy 25.99%, providing ample room for future lending and growth.
In the fourth quarter (Q4 FY25), REC posted a net profit of ₹4,236 crore, up 5% from ₹4,016 crore in Q4 FY24. Disbursements during the quarter rose 16% to ₹45,538 crore, and total income increased 24% to ₹15,174 crore.
The final dividend of ₹2.60 per share is subject to shareholder approval at the upcoming Annual General Meeting.
