Power Finance Corporation (PFC) and REC Limited’s merger is moving ahead in full steam, with execution plans being laid out to meet the statutory and regulatory requirements. After REC became a subsidiary of PFC, exposure under the Reserve Bank of India’s Large Exposure Framework was capped at the group limit of 25% of banks’ Tier I capital. Both entities have operated comfortably within these limits for over five years. Post-merger, a single-entity exposure limit of 20% will apply.
