Rs 30,000 Crore Worth Deal! Maharatna CPSE REC Ltd Ties With Bank Of India To Co-Finance Loans; Details Here

Maharatna CPSE REC Ltd, provides financial services to the power companies in India, while the Bank of India is over a hundred years old and among the largest public sector lenders. Both behemoths have decided to join hands for co-financing loans worth massive Rs 30,000 crore. This comes as good news for companies in the power and infrastructure segment.

Both REC and BOI partnered to explore the possibility of funding the Power Sector and Infrastructure and logistics Sector projects under the consortium arrangement. Hence, the loan amount will be used for power and infrastructure projects that are implementable in 5 years.

On Wednesday, REC signed an MoU with the Bank of India (BoI).

Established in 1969, the Maharatna CPSE REC Ltd under the Ministry of Power, provides long-term loans and other finance products for the Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Green Hydrogen etc. REC has also diversified into the core infrastructure sector comprising Roads, Metro, Airports, IT, Ports, etc.

The Loan Book of REC currently stands at Rs 4.54 Lakh Crore, ending the first quarter of the current financial year.

Meanwhile, the Bank of India is a Public Sector Bank that does banking Business including funding infrastructure projects across the country with a worldwide presence. Founded in 1906, BoI has made rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations.

In business volume, the Bank occupies a premier position among the nationalized banks and has a Global Gross Business of over Rs 12.14 Lakh Crore.

On Friday, both shares were trading in red due to the bear market. While the Bank of India was down for the third consecutive day, however, REC reversed the bullish trends of yesterday.

At the time of writing, REC share price traded at Rs 289.20 apiece, down by 1.92% on BSE. The company did touch an intraday high of Rs 295.65 apiece in early trade, which was near its 52-week high of Rs 299.10 apiece. Its market cap is around Rs 76,152.84 crore.

At the same time, BOI shares traded at Rs 102 apiece, lower by 1.31% on BSE currently with a market cap of Rs 41,856.37 crore. In the early trade, BOI also touched an intraday high of Rs 104.30 apiece, which was a couple of rupees away from its 52-week high of Rs 114.02 apiece.

On the previous day, REC shares gained 2% after market hours, while BOI has been in red with a downside of between 1-1.5% since October 18th.