Key highlights

For the 12 months ended March 2014, loan asset book stood at Rs 4974 crore, and more than doubled as compared to loan book of Rs 2296 crore as on Mar'13. Management is upbeat on the growth momentum and expects the loan book to double in about 18 month's time frame. In fact the management is confident of reaching to around Rs 15000 crore in next 3 years from now.

Interest spread stood at 4.57% for March 2014 and NIM stood at 6.9% and management expects the same to continue going forward in FY'15 as well.

Of the total loan asset book of about Rs 4974 crore, about 35% is from Renewable energy particularly wind, about 33% is from Thermal, 9% is from Hydro and rest are from other sectors.

Management continues to maintain its stand about asset quality. Despite the general concern of loans to wind power segment, management continues to assure that the quality of the asset book continues to remain robust and nil NPA continues.

Excess provision during the year March 2014, was as result of provision on standard asset at higher rate of 0.5% as compared to RBI guideline of 0.25%.

Management expects power and infrastructure sector activity to kick-start post election results and especially in H2 FY'14-15.

Management expects dividend distribution policy to remain strong. A portion of the Profits from sale of equity investments will be distributed to shareholders.

The management was successful in derisking its continuous focus on thermal and wind. The others that contribute about 22% of loan book represents by and large infrastructure funding be it to transmission sector, railways, coal mining etc, where there is a short duration of completion of project and yields are better.

There are no restructuring assets and nothing is in the pipeline either.

Of the equity investments, Utkal and East Coast Energy projects are running as per the revised schedule and no further delays are expected. Utkal project which is of 700 MW is likely to be commissioned by end of FY'15. Phase 1 of the East Coast Energy project of 1320 MW is likely to be commissioned by end of Dec 2015.