Archive · 24 Jul 2026
REC Q1 profit falls 6% due to cheaper loans
REC, a state-owned power sector lender in India, reported a 6% drop in profit for the first quarter of the year.
This happened because they gave out cheaper loans, which meant they earned less money from interest.
Even though their profit went down, they still decided to give their shareholders a dividend of ₹4.25 per share.
The good news is that the quality of their loans has improved, so they have very few bad loans now.
REC's Q1 profit declined by 6% due to cheaper loans reducing interest income.
The company declared an interim dividend of ₹4.25 per share.
Improving credit quality in the power sector helped reduce bad loans to near-zero levels.
Lower lending rates weighed on the company's interest income.
REC is a state-owned power sector lender in India.
- Who
- REC (Rural Electrification Corporation)
- What
- Q1 profit decline of 6% due to cheaper loans
- When
- June-quarter
- Where
- India
- Why
- Lower lending rates reduced interest income
Impact of Cheaper Loans
Dividend Declaration and Credit Quality
Profit Decline
Impact of Cheaper Loans
Cheaper loans led to a 6% decline in REC's Q1 profit due to reduced interest income.
Dividend Declaration and Credit Quality
Despite the profit decline, REC declared an interim dividend of ₹4.25 per share.
Credit Quality
Impact of Cheaper Loans
Lower lending rates impacted interest income, contributing to the profit decline.
Dividend Declaration and Credit Quality
Improving credit quality in the power sector helped reduce bad loans to near-zero levels.
- Company
- REC (Rural Electrification Corporation)
- Sector
- Power Sector Lending
- Profit Decline
- 6%
- Interim Dividend
- ₹4.25 per share
- Bad Loans
- Near-zero levels