Description
SWOT ANALYSIS OF RURAL ELECTRIFICATION CORPORATION LIMITED

Rural Electrification Corporation Limited

Parent Company

Government of India

Category

Investment Services

Sector

Banking and Financial Services

Tagline/ Slogan

Endless energy. Infinite possibilities.

USP

Leading public Infrastructure Finance Company in India’s power sector.

STP

State Electricity Boards, State Government Departments and Rural Segment Electric Cooperatives

State Electricity Boards, State Government Departments and Rural Target Group Electric Cooperatives looking for financing rural electrification projects.

Facilitate in formulation of schemes, loan sanction and disbursement and Positioning implementation of schemes by the concerned SEBs/State Power Utilities.

SWOT Analysis

1. Strong financial backing: A Government Enterprise 2. Building reputation: Company among the top 500 Global Financial Services brands 3. Recognized a Navratna company, which gives it autonomy to drive its growth 4. Accorded hightest safety ratings by CRISIL, FITCH and CARE 5. Provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers 6. Offers services like investment and private banking, asset Strength management

1. Susceptible to political intervention 2. Pressure of paying consistent dividends due to government being the Weakness major shareholder

1. Plans to undertake rural electrification programs in other countries 2. Expansion through mergers, acquisitions and investments and other Opportunity entities

1. Lenders defaulting on loans. Big defaults are costly to the company as they put pressure on profit margin 2. Lag in time of structuring deals due to environmental(such as political, social, economic, technical, legal, etc) factors Threats 3. Affected by regulatory and legal changes

Competition

1.Power Finance Corporation Ltd 2.Infrastructure Development Finance 3.IFCI Ltd 4.Haryana Financial Corporation of India Ltd Competitors 5.Gujrat State Financial Corporation



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