REC Limited CC-Sep24.pdf · 2024-10-28
Congratulations on a good set of result. Sir, on your Slide 20, where you gave your loan portfolio and ECL provision. If I see the longer-term trained on that thing. Just wanted to understand two things. One, sir, on the private sector side, in the generation and renewables, your PCR coverage on Stage 1 and 2 is continuously coming down. So for example, in March '23, it was something like more than 100 basis points, which is now 60 basis points. Similarly, on renewable, it is something like 230, 240 basis points. Now it has come down to 60 basis points. So just wanted to understand what is the rationale behind this? Is this -- I mean, and at the same time, you are growing the renewable book also. So is it because your ECL PD assumptions are lower, because you don't have any significant delinquency over th e past few years? Or is it a conscious choice?
Yes. Sir, I'll repeat it. So if I see the Stage 1 and Stage 2 provision for the private sector in Generation and Renewables segment, it is now 60 and 62 basis points, respectively, this quarter. This number, let us say, in March '23, 4, 5 quarters back, it was something like 100 and 230 basis points. So this number is continuously coming down. So just wanted to understand what is the rationale behind this? Because we are also growing the renewable book. And you are also reducing the Stage 1 and 2 provision on both the segments. So what is the rationale, sir?