Rural Electrification Corporation Ltd., a state-run lender to rural power projects, surged Monday after fiscal first quarter net profit rose 15% on higher interest income.
Net profit rose to Rs 14.78 billion for the three months ended Jun 30 compared to Rs 12.82 billion in the corresponding period year ago, Rural Electrification Corp said in a statement to the stock exchanges on Friday after market hours.
The rise in profits was despite a one time RBI mandated allowance against restructured loans of Rs 1.39 billion and an increase in the provisioning against standard loans to 0.30% in a phased manner.
This means that contingent allowance against standard loan assets rose to Rs 327.1 million compared to Rs 143.7 million in the same period a year ago.
Operating income rose 21.3% to Rs 56.62 billion for the quarter ended June 30, while operating expenses went up 22% to Rs 35.85 billion for the same period.
Other income of the company rose 18% to Rs 467.4 million in the Apr-Jun quarter.
At 10AM, REC rose 3.15% to Rs 275.20 on the Mumbai stock exchange. The 30-share Sensex index rose 0.44% to 28,359.04
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