Highlights: The loan growth of the company is in line with the guided level at 14% end September 2020. The disbursements of the company were impacted due to covid situation. However, the liquidity support announced by the government for state discoms with the REC and PFC as main lenders has supported the loan growth of the company.

The key financial indicators of the company remain stable with upward bias.

The yield on loans for the company stands at 10.67%.

With the declining interest rate environment, the cost of funds for the company is consistently declining. The cost of fund has declined by 22 bps to 7.67%.

The spreads of the company have increased by 30 bps with stable yield and declining cost of funds.

The capital adequacy ratio of the company stands at above 18% and September 2020

Going forward, the company expects to maintain existing financial ratios.

The consolidated loan book of the company has increased 15% to above Rs 7 lakh crore

The resolution of stressed assets has helped the company to exhibit consolidated decline in the gross NPA ratio to 2.6% end September 2020.

Currently 25 projects of the company are under stress end September 2020. Seventeen projects with exposure of Rs 16185 crore (64% provision) are being resolved under NCLT, while 8 projections with exposure of Rs 10342 crore (44% provision) are being resolved outside NCLT.

The provision coverage on the stage 3 assets of the company stands at 56%.

In case of RKM Power Generation with the exposure of Rs 5180 crore, the company is closer to the resolution. All lenders have agreed for the resolution except one lender. The project is expected to be resolved in the coming quarter with the approval from the last lender, while the company has enough provision for this project and do not expect any provisioning impact. This project is being resolved outside NCLT.

The gross npa ratio for the company stands at 3.12%.

The company had envisaged the borrowings of Rs 90000 crore in FY2021 from domestic as well as foreign sources, while this limit is raised to Rs 120000 crore.

The company has sanctioned 36000 crore under the discoms scheme and disbursed more than Rs 12500 crore.

The company is focusing on transmission and distribution and renewable energy segment and lending to discoms in line with the government guidelines.

The company is comfortable to maintain current credit growth in FY2021.

The company expects 5 to 6% growth in power demand next two years

The company had provided moratorium to Rs 20000 crore of dues.