Ireda Targets Steady NIM At 3.7% In FY26
CMD Pradip Das emphasises Ireda's strong fundamentals, with a 27% CAGR in its loan book.
Indian Renewable Energy Development Agency Ltd. is targeting a net interest margin of 3.6% to 3.7% over the next 12 months, according to Chairperson Pradip Kumar Das.
"We are confident after getting this 54EC sanction. We have made a rough estimate. We can easily raise Rs 4,000 to Rs 5,000 crores of 54EC bonds," he said during a conversation with NDTV Profit on Friday.
"That will further reduce our borrowing cost by around 12-15 basis points. For NIM, if we can maintain even at 3.6% to 3.7% that will be good for us," the managing director said.
The decrease in net profit and rise in NPAs were due to a loan to Gensol Engineering and a tariff revision decision from the Andhra Pradesh government.
Das said that nearly 50% of the Gensol Engineering account has been provisioned for, with Rs 360 crore set aside this quarter. However, he stressed that this is provisioning, not a write-off.
"In the history of Ireda, the cumulative written off is only Rs 135 crore, when we have financed Rs 1.62 lakh crore in the last 38 years. That account can become NPA but doesn't turn into written off as far as Ireda lending is concerned," the CMD underlined.
Das explained that the issues with the Gensol Engineering account were "promoter-related" and did not indicate a problem with the underlying business model of electric vehicles.
“We are the first lender to approach the NCLT. IRP (interim resolution professional) has already been appointed by the NCLT. We are expecting the CoC (committee of creditors) meeting soon," he said. "Once we have the CoC meeting, we will be in a better position to comment about further course of action."
Das emphasised Ireda's strong fundamentals, with a 27% compound annual growth rate in its loan book, 29% in sanctions and 31% in disbursements sustained over 21 quarters.
