1. Merger with PFC - The Union Budget announced a restructuring of PFC and REC, both Boards gave in-principle approval in February 2026, and the Ministry of Power conveyed the President's approval for REC's merger into PFC in June 2026. The merged entity becomes India's largest power-sector financer with a single balance sheet, removing the current subsidiary-parent overlap and unlocking capital efficiencies across a combined loan book.
2. Renewable energy lending - The RE loan book reached ₹75,347 crore as of March 2026, growing 30% year-on-year, and management targets a 20% market share worth over ₹3 lakh crore by 2030. RE now commands the lowest lending rates in the market and is the fastest-turning segment, pulling the private-sector share toward the stated 30% mix target.
3. Thermal generation capex cycle - India's CEA projects 80-94 GW of new coal-based capacity by 2032, and REC sanctioned ₹89,632 crore toward conventional generation in FY25 alone, with H1 FY26 generation sanctions more than doubling to ₹1,13,000 crore. Thermal loans carry rates above 10.5% and tenors up to 85% of project life, directly lifting portfolio yield.
4. ₹10 lakh crore loan book target by 2030 - Management is "very, very confident" of reaching a ₹10 lakh crore loan book by 2030, with the committed order book already at nearly ₹2.5 lakh crore and a market opportunity of ₹46 lakh crore over the next 4-5 years. Even sustaining the current 20-25% market share implies roughly ₹10 lakh crore in business, nearly doubling the March 2026 book of ₹5.84 lakh crore.
5. Transmission TBCB project pipeline - RECPDCL and PFC's subsidiary sanctioned 45 TBCB projects worth around ₹55,000 crore in the last year, with an additional ₹1.1 lakh crore opportunity expected in the next 2-3 years. RECPDCL's role as Bid Process Coordinator gives REC a direct pipeline into independently bid transmission SPVs that convert into long-tenor loan assets.
6. Distribution capex under RDSS - Distribution sanctions jumped to ₹71,000 crore in H1 FY26 from ₹36,000 crore in H1 FY25, as states now fund the 40% counterpart portion after the 60% grant phase winds down. DISCOM health is improving, 99% have filed tariff petitions, and outstanding dues to GENCOs have collapsed from ₹1.4 lakh crore to ₹22,209 crore, clearing the way for sustained capex lending.
7. Near-zero net NPA and provisioning reversals - Net Stage-3 loans fell to 0.12% by March 2026, and four operating NPA assets are expected to release \~₹2,200 crore in provisioning reversals upon resolution. A clean book removes the earnings drag from credit costs and frees up capital for the growth pipeline.
8. Sanctions momentum - Full-year FY26 sanctions hit a record ₹4,09,097 crore, up 21% over FY25, and disbursements excluding RBPF grew 28% to ₹1,46,227 crore. The sanctions book is the forward indicator of loan-book conversion, and the 21% growth rate runs ahead of the guided 11-12% loan growth, signalling a rising committed pipeline.
9. PM Surya Ghar rooftop solar scheme - REC is the sole national implementation agency for the ₹75,021 crore scheme targeting 1 crore households by 2028, with 17 lakh households already covered by Q2 FY26. While REC does not do retail financing, it finances aggregated vendors and PSUs executing large-scale rooftop solar, adding a new distribution-linked asset stream.
10. Diversified low-cost funding - REC raised maiden yen bonds of JPY 61.1 billion, a USD 500 million Green bond, and domestic zero-coupon bonds at 6.25%, while retaining access to 5.25% Section 54EC capital gains tax exemption bonds. A cost of funds at 7.11% against a 10.05% portfolio yield sustains the guided 2.75-3% spread even as the card rate was reduced in May 2025.