REC LIMITED — Investor Presentation 2018

Sep 17, 2018

smegma: moi-{rem Electrification Corporation

(ma m) (A Enterprise) Ragd. Core-4, Complex. Road, New +91-11~4102 9911124146 reooorp@red.nic.in L401010L196960I005095 www.mlndianiejn

/187(2)/2l)18/ 3Q Lyi

September 17,

ListingDepartment,NationalStockExchangeofIndiaLimited	CorporateBSEelationshipDepartmentLimited
ExchangePlaza,BandraKurlaComplex,Bandra(East),	1'Floor,PhirozeJeejeebhoyTowers
@E'—400051s	DalalStreet,Fort,
ScripCode—RECLTD	'—ScripCode—532955

Schedule Investors' Conference discuss financial results Company quarter 30, 2018.

Dear Sir(s),

compliance Regulation (Listing Obligations Disclosure Requirements) egulations, 2015, this to that Investors' Conference Call be Tuesday, September 18, 2018, 10.30 AM. to discuss financial results the Company quarter 30, copy invite same enclosed herewith.

Further, copy of presentan'on respect financial results the Company website quarter 30, 2018 enclosed herewith same also available the the Company :// in am .in/u ti] /P esn FY13-19-lg140918pfl.

your information and dissemination.

Thanking you,

Yours aithfully,

mitabh) Secretary

Encl.: as above

(CIRE).

Hyderabad

RURAL ELECTRIFICATION CORPORATION

Hosted by Edelweiss Securities

India Equity Research

September 17, 2018

We are organizing a conference call with the management of Rural Electrification Corporation, to discuss the company's Q1FY19 results on Tuesday, September 18, 2018, at 10.30 AM IST.

Dr. P.V. Ramesh - Chairman & Managing Director and Mr Ajeet Kumar Agarwal – Director (Finance), will represent Rural Electrification Corporation on the call.

Details of the conference call are as under:

Time : 10.30 AM IST on Tuesday, September 18, 2018

Conference dial-in:
India	:	Mumbai
		Primary access number	+ 91 22 6280 1123
			+91 22 7115 8024
USA	:		1 866 746 2133
UK	:		0 808 101 1573
Singapore Toll Free No.	:		800 101 2045
Hong Kong Toll Free No.	:		800 964 448

Call leader Mr. Kunal Shah

For further information please contact:

Kunal Shah Edelweiss Securities Ltd. Tel.: +91 22 4040 7579 Fax: +91 22 2286 4310 E-mail: kunal.shah@edelweissfin.com

Rural Electrification Corporation Limited A Navratna PSU

Management Presentation Performance Highlights Q1 FY 19

THE FUNDING PARTNER FOR POWER SECTOR

Table of Contents

• India - Power Sector – Empowering India
• REC Overview
• Operational Performance
• Transition to Ind-AS
• Asset Quality
• Borrowing Profile
• Financial Highlights

Disclaimer :

• Financial Highlights • This presentation is for information purposes only and is not to be construed as an offer or invitation or recommendation to buy or sell any securities of Rural Electrification Corporation Limited ("REC"), nor shall part, or all, of this presentation form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities of REC.
• The user of the information contained herein will be solely responsible for own assessment of the market and the market position of REC and to conduct own analysis and will be solely responsible for forming a view of the potential future performance of the business of REC.
• The information in this presentation is being provided by REC relying on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

India Power Sector Empowering India

7000 Substations

Transmission Lines 3,96,149 CKM

Transmission

LINES 100 nos -765KV >1300 nos –400KV

Transformation Capacity 8,25,488 MVA

LINES >3200 nos– 220KV 10 nos – HVDC Bipole BtB

26 ISTS Transmission Licensees

Annual Per Capita Consumption of Electricity (kwh)

Source : CEA & Wikipedia

Estimated Demand by 2021-22 (MW)

Source : CEA

Generation Capacity by 2026-27 (GW)

As at 30.06.18 2021-22 2026-27

Fund Requirement (Generation) by 2026-27 (Rs. Crores)

Estimated fund requirement for generation capacity addition – INR 18,90,053 Crores from 2018-19 to 2026-27

Source : CEA, National Electricity Policy

CKM Transmission Line Capacity by 2021-22 (CKM)

Capacity by 2021-22 (MVA)

Estimated fund requirement for Transmission capacity addition including Transformation – INR 2,60,000 Crores during the period 2017-22

Renewable Energy in India

Sources	Potential (%)	Potential (GW)
WindPower(Onshore)	11%	103
Solar	83%	749
SmallHydro	2%	20
Biomass/Bagasse	3%	23
WastetoEnergy	1%	2.7
Total Potential (GW)	100%	897.7
WindPower(Offshore)		127
Grand Total Potential (GW)		1024.7
Source : Wind Energy Mission Doc, C-Wet , NISE estimates, MNRE

• Voluntary commitment to reduce emission intensity by 33% 35% from 2005 levels by 2030.
• To achieve about 40% cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030
• Core drivers for renewable energy being Energy security reducing dependence on fossil fuels); Electricity shortages (to meet the growing requirements) and Energy Access for all

Particulars	InstalledCapacity31.03.2018	InstalledCapacity30.06.2018	Target2022		Expected 2027(NEP)
Solar >1 MW	21,651	23,023	100,000		1,50,000	55%
Wind	34,046	34,29360,000		24%	1,00,000	36%
Small HydroPower	4,486	4,494	5,000	3%	8,000	3%
Biomass/Other	8,839	8,839	10,000	6%	17,000	6%
Total InstalledCapacity (MW)	69,022	70,649	175,000	100%	2,75,000	100%

Target 2022 of 175 GW < 20% of total potential and estimated 2027 < 30% of total potential

Distribution Modernization by 2019

Does not include data of Mizoram, Nagaland, Andaman and Nicobar Islands, Lakshadweep * Source : https://www.uday.gov.in

SAUBHAGYA

Universal access to Quality Power for All

Overview

• W.e.f 11th October 2017, Govt. of India launched Rs. 16,350 crores household electrification scheme named Pradhan Mantri Sahaj Bijli Har Ghar Yojana (translated as the Prime Minister's Programme to provide easy electricity access to all households), or 'Saubhagya' )
• Objective of the 'Saubhagya' is to provide energy access to all by last mile connectivity and electricity connections to all remaining un-electrified households in rural as well as urban areas estimated to be around 3.96 crores households.
• Projects under the scheme are sanctioned based on the Detailed Project Reports to be submitted by the States, prepared by the State DISCOMs / Power Department and sanctioned by an inter-ministerial Monitoring Committee headed by the Secretary (Power), Government of India
• Considering an average load of 1 KW per household and average uses of load for 8 hours in a day, estimated rise in demand for power after inclusion of all households will be about 28,000 MW. With the enhancement of income and habit of using electricity, the demand of electricity is bound to increase
• Access to electricity is also expected to boost power-based ancillary economic and business activities, which will further increase the demand for power

Agency		Quantum of Support (% of Project Cost)
		Other thanSpecial CategoryStates	Special Category States
Government of India	Grant	60%	85%
Utility / State Contribution	Own Fund	10%	5%
Loan (FIs/Banks)	Loan	30%	10%
AdditionalGrantfromGoIonachievementofprescribedmilestones	Grant	50% of loan component	50% of loan component
MaximumGrantbyGoI(includingadditionalgrantonachievementofprescribedmilestones)	Grant	75%	90%

Financial Support under the Saubhagya Scheme

REC is the Nodal Agency for operationalization of the Saubhagya scheme throughout India 14

REC Overview

Key Strengths

Occupies Strategic Position in the Growth and development of the Power Sector across India

Strong Fundamentals and Profitable Business

Experienced Management Team With Sector Expertise

Highest Domestic Rating of "AAA"; International Ratings of "Baa3" & "BBB-" from Moody's and Fitch respectively

Unique and close relationship with all major players – Public & Private - in Indian Power sector

Nodal Agency for providing 24x7 quality power to all 600,000 villages of India

Nodal Agency for major Govt. of India's power sector programmes – Saubhagya, DDUGJY, UDAY, Power for All etc.

Major Player in Renewable Energy segment and creation of India's Green Energy Corridor

16

Major Milestones in Long & Successful journey of more than 49 years

2017

Jun' 2018 : "Bharat 22" ETF FFO, GOI holding reduced to

- Jun' 2018 : Migrated

57.99%

to Ind-AS

2018

Experienced Team with sector experience

Dr. P.V. Ramesh, IAS Chairman & Managing Director IAS officer (1985 batch)

with rich and varied experience of > 33 years

• Was Principal Finance Secretary / Additional Chief Secretary and Development Commissioner to Government of Andhra Pradesh for five years.
• Substantial expertise & experience in development assistance management (Government, UNOPS, UNFPA, IFAD, World Bank, DFID, DANIDA, UNICEF, etc.), resource mobilisation, financial management; delivering high quality technical assistance (UNDP, UNICEF, UNCTAD, UNIDO, World Bank, DANIDA, DFID etc.); effective management of international procurement and efficient contract administration (World Bank, UNOPS, UNOIP, Government), and international development agencies, governments, financial institutions, corporate enterprises, NGOs, and research institutions.
• Held senior diplomatic assignments including, UNFPA Country Representative in Afghanistan; Director UNOPS; UNOPS / World Bank Senior Advisor; UNOPS / IFAD Senior Country Programme Manager; UNOPS Senior Portfolio Manager; Staff Officer in IFAD and UNOPS HQ; represented UNOPS in UNDG at New York and IFAD in consultative group meetings.
• Physician with distinction in medicine and surgery from CMC Vellore, Tamil Nadu, India.

Mr. Ajeet Kumar

Agarwal Director (Finance)

> 34 years experience in Finance Sector

• Experience in the field of Financial Management and Operations encompassing organizational and financial planning, financial policy formulation, accounting, management control systems, funds management etc. Also supervise treasury & lending and advise on corporate risk management matters.
• B. Com (Hons.) from Shri Ram College of Commerce, Delhi University & Fellow Member of Institute of Chartered Accountants of India.

Experienced Team with sector experience

Mr. Sanjeev Kumar Gupta Director (Technical) > 34 years experience in Power Transmission Sector

• Extensive experience in Design & Engineering, planning & implementation & induction of new technologies in power transmission projects.
• BE (Electrical) from G.B. Pant University of Agriculture & Technology, Pant Nagar, Uttaranchal.

Dr. Arun Kumar Verma Govt nominee Director JS(RE), MoP >29 years of

administrative & management experience

• Previously, posted as Member Secretary of Gujarat Ecology Commission, and Project Director of World Bank funded Integrated Coastal Zone Management.
• Holds Master's degree in Physics, Ph.D. in Tribal Development Policy. Post Graduate in Public Policy & Management (PGPPM) from IIM, Bengaluru & Maxwell School of Citizenship and International Affairs, Syracuse University, USA
• Part of the Indian Forest Services (IFS) since 1986 in the Gujarat cadre and has over 29 years of administrative and management experience.

Experienced Team with sector experience

Professor T.T. Ram Mohan Independent Director Professor of Finance & Accounting in IIM, Ahmedabad.

• Specializes in financial sector. Previously, Divisional Manager with Tata Economic Consultancy Services. Carried out policy studies for Govt and international agencies and consulting assignments in India as well as in the Gulf and the Middle East
• B.Tech from IIT, Mumbai; PGDM from IIM, Calcutta; Ph.D from Stern School, NY University.

Mr. Aravamudan Krishna Kumar Independent Director

> 40 years experience in all facets of Banking Sector

• Served SBI for >39 yrs, where elevated to position of MD & Group Executive.
• Was also on the Boards of SBICAP Securities, SBI Life Insurance, SBI General Insurance and SBI Credit Cards and subsidiaries of SBI. Is also an Independent Shareholder Director on the Board of Andhra Bank.

Experienced Team with sector experience

Ms. Asha Swarup Independent Director

IAS officer (1973 batch) Retd. with varied experience

• Has served as Secretary Ministry of I&B, Special Secy./ Addl. Secy. & Financial Adviser in the Ministries of Commerce and Textiles. Chief Secretary, Principal Secy. in Departments of Finance, Health, Power, Home and Chairperson of HP Power Corp, HP State Electricity Board and HP Transmission Corporation in Himachal Pradesh
• IAS officer (Retd.) of 1973 batch, PG from DU and Pearson Fellow of IDRC, Canada.

Dr. Bhagvat Kishanrao Karad

Independent Director Medical practitioner with business acumen

Independent Director on the Board of REC since July 17, 2018.

Has been on advisory Board of Wockhardt Foundation & Aurangabad Airport Authority and advisory member for the Govt Medical College and Hospital, Aurangabad. Has been Mayor of Aurangabad Municipal Corporation twice. Due to his business acumen to run commercial organizations and experience to handle various social responsibilities, especially in Rural Maharashtra, he has gained knack in addressing socio-economic issues and writing as well as recommending policies to the concerned departments in the State Government especially for projects related to rural India. Serving as acting Chairman of Marathwada Statutory Development Board (MSDB)

Pediatric Surgeon (M.B.B.S, M.S in General Surgery and F.C.P.S. M.Ch. in Pediatric Surgery.

* During Q1 FY 19, President of India, acting through MoP has transferred 72,22,395 equity shares of the Company, in connection with Follow-on Fund offer of Bharat-22 ETF. However, 7,49,151 equity shares were transferred back to Govt. of India in July 2018. Accordingly, as on date, the shareholding of Govt. of India stands at 57.99%.

Top 10 Share holders as at June 30, 2018

Rank	Particulars	Shareholding(%)	Category
1	President of India	57.95	POI
2	Life Insurance Corporation of India	2.30	INS
3	The Prudential Assurance CompanyLimited	1.95	FPI
4	HDFC Trustee Company Limited -HDFCPrudence Fund	1.20	MUT
5	HDFC Trustee Company Limited -HDFCEquity Fund	0.99	MUT
6	EastspringInvestments -Developed andEmerging Asia Equity Fund	0.97	FPI
7	CPSE ETF	0.92	MUT
8	SBI Magnum TaxgainScheme	0.61	MUT
9	Vanguard Emerging Markets Stock IndexFund	0.60	FPI
10	India Capital Fund Limited	0.58	FPI
	TOTAL	68.06

POI = President of India; INS = Insurance Companies ; FPI = Foreign Portfolio Investors; MUT = Mutual Fund

Dividend Payout as a % of Equity Share Capital

Dividend pay-out adjusted for bonus share issue of 1:1 in Sep'2016

RBI vide its circular dated 31st May 2018 withdrew the exemption available to Govt. NBFCs on applying Prudential Norms. REC is already complying with the norms and the position of the same is as below :

Particulars	RBI circular dated 31stMay 2018	Present Status of REC	Impact
AssetClassification	NPArecognitionnorms120daysbyMarch31,2019,90daysbyMarch31,2020	RECalreadyimplemented90daysnormforassetclassificationw.e.fApril01,2017.	NoImpact
Capitaladequacy	CRAR–15%withinminimumTier-Iof10%byMarch31,2022	RECbeingaNBFC-IFCisalreadyfollowingRBInormsof15%(minimumTier-Iof10%).REC'sCapitaladequacyasatJune30,2018is16.66%(Tier–Ibeing14.35%).	NoImpact.
Concentrationofcredit/investment	CreditConcentrationnorms-ForGovt.NBFCsasperspecificapprovalgivenbyRBI	RBIhasexemptedRECfromapplicabilityofRBI'sconcentrationofCredit/Investmentnorms,inrespectofitsexposuretoCentral/StateGovernmententitiesupto31stMarch,2022.	NoImpact
Section45ICofRBIAct1934	ByMarch31,2019NBFCtotransfer20%ofitsnetprofiteveryyearasdisclosedintheprofitandlossaccountandbeforeanydividendisdeclaredtoReserveFund,incomplianceofSection45ICofRBIAct1934.	Complied.Section45ICreservefundcreatedstartingfromquarterendedJune30,2018amountingtoRs.294cr.	Complied

No impact on REC of RBI circular dated 31st May 2018.

Even complying with the RBI directions, suo moto, well before the deadline.

Operational Performance 25

Total Sanctions 61,421 100 65,471 100 83,871 100 107,534 100 18,767 100

Growth - 7% 28% 28%

	12M								Q1
Discipline-wise	FY 15	%	FY 16	%	FY 17	%	FY18	%	FY19	%
Generation	13,828	32	12,820	27	21,697	37	18,086	29	2,035	24
Renewable Energy	295	1	304	1	1,618	3	5,403	9	1,475	18
Transmission	6,286	15	8,529	19	10,520	18	6,668	11	1,053	13
Distribution	20,159	47	22,173	48	19,429	34	24,920	40	3,053	37
Total Transmission &Distribution	26,445	62	30,702	67	29,949	52	31,588	51	4,106	50
Total Project Loans	40,568	95	43,826	95	53,264	92	55,077	89	7,616	92
Growth	-		8%		22%		3%
Short Term Loan	2,250	5	2,200	5	4,775	8	6,635	11	700	8
Total Disbursements	42,818	100	46,026	100	58,039	100	61,712	100	8,316	100
Growth	-		7%		26%		6%

Outstanding Loans – Composition

	12M									Q1
Discipline-wise	FY 15		FY 16		FY 17		FY18		FY19
	Amt	%	Amt	%	Amt	%	Amt	%	Amt	%
State	133,712	75	153,941	77	151,976	75	186,445	78	189,067	78
Joint	14,629	8	16,808	8	16,728	8	19,798	8	19,905	8
Private	31,306	17	30,529	15	33,225	17	33,206	14	32,941	14
Total	179,647	100	201,278	100	201,929	100	239,449	100	241,913	100
Growth			12%		0%		19%		1%
Generation	75,632	41	86,980	43	100,441	50	108,442	46	94,207	38
Renewable Energy	756	1	1,000	1	2,447	1	7,506	3	8,503	4
Transmission	28,372	16	35,289	18	42,520	21	45,558	19	38,918	16
Distribution	73,790	41	76,087	37	52,933	26	72,295	30	95,746	40
Total T&D	102,162	57	111,376	55	95,453	47	117,853	49	134,664	56
Short Term Loans	1,097	1	1,922	1	3,588	2	5,648	2	4539	2

Outstanding Loans - Asset Diversification

PAN India Presence with loan concentration across 28 states and 1 Union Territory

Private Sector Borrowers

32,941

Outstanding Loans –Loan Concentration

Major Borrowers (as on June 30, 2018)

S.No.	Top Ten Borrowers	AmountOutstanding(RsCr.)	% of Total LoanAssets
1	Maharashtra State Electricity Distribution CompanyLimited	13,062	5.40%
2	Maharashtra State Power Generation Company Limited	12,532	5.18%
3	Rajasthan Rajya Vidyut Utpadan Nigam Limited	10,648	4.40%
4	Tamil Nadu Generation and Distribution Corporation	8,872	3.67%
5	Tamil Nadu Transmission Corporation (TANTRANSCO)	8,220	3.40%
6	NabinagarPower Generating Co. PvtLtd	8,163	3.37%
7	Uttar Pradesh Power Transmission Corporation Limited	7,068	2.92%
8	Andhra Pradesh Southern Power Distribution CompanyLimited (APSPDCL)	6,484	2.68%
9	Andhra Pradesh Power Generation Corporation(APGENCO)	6,385	2.64%
10	Uttar Pradesh Power Corporation Limited	5,788	2.39%
	Total	87,222	36.05%

Well diversified asset portfolio with Top 10 borrowers accounting for ~36% of current loans and no single borrower accounting for more than 6% of total loan book

Transition to Ind-AS

S.	Particulars	AccountingundertheearlierAS(IGAAP)	AccountingasperInd-AS
No.
1.	Loan-related	Recognizedasincomeonaccrualbasis	RecognizedasperEffectiveInterestRate(EIR)method,
	fees based		wherebyfeeisrecognizedalongwiththeinterestoverthe
	Income		tenoroftheloan.
2.	Provisioning	MadeonthebasisofRBIMasterDirections,as	MadeonthebasisofExpectedCreditLoss(ECL)Model,
	onLoans	pertheclassificationofloansandageingofthe	whichconsiderstheprobabilityofdefaultandtheexpected
		Non-Performingassets(NPAs)	losstotheCompany.
3.	Fund-raising	Chargedasexpenseasandwhentheexpense	RecognisedasperEffectiveInterestRate(EIR)method,
	Costs	wasincurred,exceptfordiscountonissueof	wherebythefundraisingcostsarerecognizedalongwiththe
		bondsandone-timearrangementfeewhich	interestoverthetenoroftheloan.
		wasamortisedovertheperiodofsuch
		borrowings
4.	Foreign	Amortisedoverthetenorofthelong-term	Forexistingborrowingsason01-04-18-Amortizedoverthe
	Exchange	borrowings	tenorofthelong-termborrowings
	Fluctuation		Forfreshborrowingsafter01-04-18-ChargedtoStatement
	Differences		ofProfit&Lossinthesameperiod.
5.	Derivative	Restatementgains/lossesonderivativeswere	Mark-to-Marketgainsandlossesrecognizedinthe
	Accountingon	amortisedovertheperiodofsuchcontracts,in	StatementofProfit&Lossinthesameperiodinwhichit
	Forward	linewiththetreatmentadoptedforunderlying	occurs.
	Contracts	borrowings
6.	FairValueof	LongtermEquityInvestmentswererecorded	Changesinfairvalueoftheequityinvestmentsistobe
	Equity	atcost.Further,provisionfordiminutionwas	recognizedintheStatementofProfit&LossorOther
	Instruments	onlydoneforpermanentdeclineinthevalue.	ComprehensiveIncome(OCI).
		Currentinvestmentswererecordedatcostor
		fairvalue,whicheverislower.

Expected Credit Loss Model – Ind AS 109

REC is a NBFC and as per current regulatory developments, NBFCs needs to comply with Ind-AS for financial reporting instead of RBI prudential norms.

Ind AS 109 introduces a new model of provisioning of credit losses, based on the concept of Expected Credit Losses (ECL), thus requiring future expected losses to be estimated using reasonable and supportable information about past events, current conditions and forecasts of future economic conditions.

Provision for impairment = Exposure at default (EAD) x Probability of default (PD) x Loss given default (LGD)

• - EAD is balance outstanding for each loan asset as on reporting date
• - PD is probability of whether borrowers will default in their obligations in the future..
• - LGD is an estimate of the loss from a transaction given that a default occurs.

Expected Credit Loss Model – Ind AS 109

The period for which expected credit loss to be recognised depends on the type of loan assets which is classified in different stages as below:

Stage 1 – Loan assets with low credit risk or where credit risk has not increased significantly since initial recognition (Performing)

Stage 2 – Loan assets with significantly increased credit risk since initial recognition but do not have objective evidence of a credit loss event (Under-performing)

Stage 3 – Loan assets with objective evidence of impairment at the reporting date (Non-performing assets)

For Stage 1 assets, Losses from defaults expected in next 12 months from reporting date is provided. For Stage 2 and Stage 3, Lifetime expected losses is provided

IMPACT:

Following this approach, loss allowance has been increased as previously LGD was considered as per RBI prudential norms though for application of ECL model, LGD is based on expected realisation for respective accounts.

Key impacts of transition to Ind AS

Ind-AS implemented from Financial Year 2018-19, with transition date as April 01, 2017.

Provision has been made in respect of all loans assets including credit impaired assets (NPAs) in accordance with the Expected Credit Loss (ECL) methodology, evaluation & calculation as per Ind-AS, undertaken by an independent agency IRR Advisory Service Pvt. Ltd., 100% subsidiary of Fitch Ratings group.

No Stage III Credit Impaired Assets (NPAs) in Government Sector. Net Stage III Assets (NPA) dropped to 4.27% in Q1FY19 from 5.68% as per IGAAP in Q4FY18.

Provision Coverage Ratio against Credit impaired assets improved to 47.41% as at June 30, 2018

Provision of Rs. 2,090 crores, 0.94% created on the Standard Assets (Stage I and Stage II) higher than prescribed by RBI Prudential norms

Post implementation of Ind-AS Net worth stands at Rs. 32,478 crores as at June 30, 2018.

Capital Adequacy Ratio as at June 30, 2018 stands at 16.66% (Tier - I : 14.35%; Tier – II : 2.31%)

Asset Quality

Asset Quality & Provision Coverage

			As at June 30, 2018		Figures : Rs. Crores
Utility	Total Loan		Credit Impaired	Assets (NPAs)		Total
	Outstanding	Outstanding	Provision	Provision	Outstanding	Provision	Provision	Provision
				coverage ratio (%)			coverage ratio (%)
State Sector
-Gencos	66,625	-	-	-	66,625	107	0.16	107
-Renewables	5,270	-	-	-	5,270	9	0.16	9
-Transcos	36,792	-	-	-	36,792	12	0.03	12
-Discoms	100,285	-	-	-	100,285	261	0.26	261
Total State Sector	208,972	-	-	-	208,972	389	0.19	389
Private Sector
-Genco	27,582	18,483	9,012	48.76	9,099	1,332	14.64	10,344
-Transcos	2,126	1,112	278	25.00	1,014	332	32.74	610
-Renewables	3,233	56	26	46.43	3,177	37	1.16	63
Total PrivateSector	32,941	19,651	9,316	47.41	13,290	1,701	12.80	11,017
Grand Total	241,913	19,651	9,316	47.41	222,262	2,090	0.94	11,406

NPAs	Value	%
Gross	19,651	8.12
Net	10,335	4.27

Borrowing Profile

International Ratings

Outstanding Borrowings

					Rs. Crores
	12M			Q1
Particulars	FY 15	FY 16	FY 17	FY 18	FY 19
Institutional, Subordinate& Zero Coupon Bonds	97,068	109,678	113,449	128,871	128,395
Foreign Currency Borrowings	24,028	21,924	21,081	25,996	27,242
FCNR (B) Loans	-	-	-	3,811	4,018
Capital Gain Bonds	15,591	17,164	19,477	23,705	23,746
Tax Free Bonds	11,649	12,648	12,648	12,648	12,648
Commercial Papers	-	5,600	-	3,250	3,250
Banks, FIs, etc.	2,312	1,850	750	400	816
Infra Bonds	376	242	112	110	110
Grand Total	151,024	169,106	167,517	198,791	200,225
Average annualized Cost ofFunds	8.36%	8.50%	8.13%	7.53%	7.27%

39

Funds Raised During The Period

Rs. Crores

	12M			Q1
Category	FY15	FY16	FY17	FY18	FY 19
(A) Long Term
Capital Gains Bonds	5,338	6,477	7,663	9,565	1,222
Tax Free Bonds	-	1,000	-	-	-
Institutional Bonds/ Subordinate Debt	29,200	15,526	18,600	26,145	-
Foreign Currency Borrowings	6,652	8,252	2,232	11,696	-
Total (A)	41,190	31,255	28,495	47,406	1,222
	8.07%	7.01%	6.85%	6.17%	5.75%
(B) Short Term
FCNR (B) Loan	-	-	-	3,759	-
Commercial papers	5,894	20,772	19,917	12,115	-
Total (B)	5,894	20,772	19,917	15,874	-
Total (A + B)	47,084	52,027	48,412	63,280	1,222

%age denotes annualized cost of borrowings mobilized 41

Funds Raised During The Period (Long Term)

Financial Highlights

Standalone Profit & Loss Statement

		Rs. Crores
Particulars		Q1
	FY 18	FY 19
Interest Income	5,467	5,669
Less: Finance Costs	3,187	3,628
Net Interest Income	2,280	2,041
Other Operating Income	160	70
Other Income	1	580
Total Income	5,628	6,319
Other costs *	317	448
Impairment loss on financial assets	723	132
Profit Before Tax	1,401	2,111
Tax Expense	325	642
Profit After Tax	1,076	1,469
Other Comprehensive Income/(Loss)	(15)	(72)

* Other Costs include Employee Benefit Expenses, CSR Expenses, Depreciation & amortization expense and Other Expenses

Particulars	Q1
	FY 18	FY 19
Yield on Loan Assets (%)	11.09	10.32
Cost of Funds (%)	7.59	7.27
Interest Spread (%)	3.50	3.05
Net Interest Margin (%)	4.63	3.72
Return on Net Worth (%)	13.85	18.15
Interest Coverage Ratio (Times)	1.44	1.58
Debt Equity Ratio(Times)	5.33	6.16
Earning per Share (FaceValue Rs. 10 per share)	21.79	29.75
Book Value Per Share (FaceValue Rs. 10 per share)	159.88	164.45

Yield = Ratio of interest income to average interest earning loan assets

Cost of funds = Ratio of finance costs to average borrowings, without foreign exchange fluctuation gain/loss amortized.

Interest Spread = Yield minus Cost of Funds

Net Interest Margin = Ratio of net interest income, without foreign exchange fluctuation gain/loss amortized to average interest earning loan assets Interest Coverage Ratio = Ratio of Profit before Interest & Tax to Interest

Debt Equity = Ratio of Total Borrowings to Net Worth

Return on Average Net worth = Ratio of PAT to average Net Worth

Reconciliation of Net Profit for June 30, 2017

Particulars	Amount(in Rs. crores)
Profit under IGAAP for the period ended 30 June 2017	1,301.14
Adjustments under Ind AS
Incremental provision on application of expected credit loss model	(400.10)
Adjustment on account of effective interest rate on financial liabilities and financial assets	(20.41)
Incremental impact of fair valuation of derivatives	(87.79)
Fair value of investments through OCI	19.61
Other adjustments	(0.11)
Tax impact on above adjustments	263.62
Total Ind-As Impact	(225.18)
Profit under Ind AS for the period ended 30 June 2017	1,075.96
Other comprehensive income, net of tax	(15.39)
Other comprehensive income under Ind AS for the period ended 30 June 2017	1,060.57

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