Key highlights:

. The total income of the company increased 20% to Rs 271.27 crore, while Profit After Tax improved 10% to Rs 67.45 crore Q1FY2016.

. The loan sanctions increased 57% to Rs1496 crore and disbursements jumped 69% to Rs 870 crore in Q1FY2017. The cumulative sanctions moved up 39% to Rs 15725 crore at end June 2016.

. The outstanding loan assets surged 38% to Rs 9074 crore at end June 2016 from Rs 6582 crore at end June 2015. The company hopes to continue with the momentum especially in the renewable energy.

. The company has active sanctions pipeline of Rs 5000 crore, of which about 70-80% is in the renewable energy segment. The company is also diversifying to the sectors such as road and ports. About Rs 2500-3000 crore of sanctions are under discussion.

. The loan book consists of renewable projects (46%), thermal projects (29%), hydro (5%) and others (21%).

. The company has received the “Financial Institution” status under the SARFAESI Act, 2002, which would enable to take effective measures related to recovery of dues / loan amount and restoration of economic value of the stressed assets.

. Asset quality of the company weakened with the surge in Gross NPAs to Rs 529 crore at end June 2016 from Rs 294 crore at end March 2016. During the quarter, three loan accounts with aggregate exposure of Rs 235 crore, earlier identified as stressed assets and sufficiently provided for, became NPA.

. Of these three accounts, two related to thermal power sector and one related to hydro power sector. The hydro power project is about 80% completed and currently stalled for fresh equity infusion. First thermal power project is 20% complete, while another thermal power project is in initial stages of implementation.

. Of the fresh slippages in Q1FY2017, the company has made some recovery in one account with the exposure of Rs 120 crore, which may become performance in Q2FY2017.

. The interest income reversals on account of fresh slippages stood at Rs 25 crore in Q1FY2017.

. Restructured advance book of the company stood at Rs 307 crore at end June 2016.

. The cost of borrowing increased to 9.04% in Q1FY2017 from 8.95% in Q4FY2016.

. With the increase in cost of borrowings and interest income reversals, the interest spread of the company declined to 2.65% in Q1FY2017 from 3.88% in Q4FY2016. NIM also dipped to 4.62% from 5.76%.

. The margins of the company were also impacted due to rising share of quality assets. The company expects to maintain spreads above 3% and NIMs around 5%, going forward.