REC Limited and Punjab National Bank (PNB) have signed a Memorandum of Understanding (MoU) to jointly fund projects in the Power Sector and Infrastructure & Logistics Sector. The partnership will see the two entities co-finance loans amounting to INR 55,000 crores over the next three years.
The MoU was signed in Gurugram on Tuesday by Shri T.S.C Bosh, Executive Director (Infra & Logistics), REC, and Shri Rajeeva, CGM (Corporate Credit Division), PNB. The signing was witnessed by Director Finance, REC, Shri Ajoy Choudhary; Director (Projects), REC, Shri V K Singh, and other senior officials from both organizations.
Following the announcement of the MoU, shares of Punjab National Bank opened nearly 1% higher at INR 80.10 on the NSE on Wednesday. Similarly, shares of REC were trading at INR 270.60, marking a 3.2% increase at open.
REC Limited, a Central Public Sector Enterprise under the Ministry of Power, provides long-term loans and finance products for the Power sector, including Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles. The company's loan book exceeds INR 4,54,393 crore.
Punjab National Bank is one of the largest Public Sector Banks in India with Global Gross Business at INR 22,14,741 crores. The bank has a worldwide presence and is involved in funding infrastructure projects across the country.
Both companies reported significant growth in their respective net profits for Q1 FY24. Punjab National Bank saw a 307% rise in net profit to INR 1,255.41 crore for the quarter ending June 2022. Meanwhile, REC reported a 21% year-on-year increase in net profit to INR 2,968.05 crore for the same period.
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