Business Today
Loading...

Reliance Capital defaults on HDFC, Axis Bank loans

Reliance Capital failed to make interest payment of Rs 4.77 crore to HDFC and Rs 71 lakh to Axis Bank as on October 31

twitter-logoBusinessToday.In | November 30, 2020 | Updated 21:47 IST
Reliance Capital defaults on HDFC, Axis Bank loans
Reliance Capital total debt stood at Rs 20,077.14 crore as on October 31, 2020

Cash-strapped Reliance Capital has defaulted on term loans of HDFC Ltd and Axis Bank as on October 31, 2020, the company said in a regulatory filing.

The company failed to make interest payment of Rs 4.77 crore to HDFC and Rs 71 lakh to Axis Bank on October 31, Reliance Capital disclosed in a filing to the Bombay Stock Exchange. However, there was no default in a principal amount from these private lenders.

The Anil Ambani-backed firm said the delay in servicing debt was due to the company being barred from selling off assets by Delhi and Bombay high courts as well as the Debts Recovery Tribunal.

"The company is unable to proceed with asset monetisation resulting in delay in debt servicing, due to prohibition on the company to dispose of, alienate, encumber either directly or indirectly, or otherwise part with the possession, of any assets except in the ordinary course of business such as payment of salary and statutory dues, pursuant to order dated November 20, 2019, passed by the Delhi High Court, and orders dated December 3, 2019, and December 5, 2019, passed by the Debts Recovery Tribunal, Mumbai and order dated November 4, 2020, passed by the Bombay High Court," Reliance Capital said.

Reliance Capital had borrowed Rs 523.98 crore from HDFC at an interest rate of 10.60-13 per cent per annum for tenure between 6 months and 7 years. It borrowed Rs 100.63 crore from Axis Bank at an interest rate of 8.25 per cent per annum for 3-7 years.

The company's total outstanding borrowings from banks and financial institutions stood at Rs 690 crore, which includes accrued interest up to October 31, 2020.

Meanwhile, Reliance Capital's total indebtedness including short-term and long-term debt stood at Rs 20,077.14 crore as on October 31, 2020.

Weighed down by the development, Reliance Capital share ended Monday's trade at a lower circuit of Rs 9.71 apiece, down 4.99 per cent, on the BSE.  

By Chitranjan Kumar

Also Read: Reliance confirms buying stake in lingerie retailer Zivame

Also Read: Anil Ambani's Reliance Capital invites bids for stake sale in subsidiaries

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close