New Delhi, May 5 (IANS): Leading government-owned financial company REC on Sunday said it has received a nod from the Reserve Bank of India (RBI) to set up a wholly-owned subsidiary in GIFT City in Gujarat.

The subsidiary will engage in several financial activities as a finance company within GIFT, including lending, investment, and other services.

"The GIFT City platform offers a conducive environment for international lending activities, coupled with world-class infrastructure. We are confident that REC will harness these advantages to carve a niche for itself in the global market," said Vivek Kumar Dewangan, CMD, REC.

The entity at GIFT City will not only present new business opportunities for REC but will also contribute significantly to the growth of the country's energy sector.

"We look forward to leveraging this strategic move to further propel REC's mission of fostering growth in India's power and infra sector while expanding our footprint on the global stage," Dewangan added.

The decision to expand operations into GIFT City in Gandhinagar comes as REC continues to diversify its portfolio and explore new avenues for growth.

REC, under the Ministry of Power, registered a 34 per cent increase in net profit at Rs 4,016 crore for the January-March quarter of FY24. The operating revenue went up 25 per cent to Rs 12,613 crore during the quarter.