Reliance Capital shares fall 3% after defaulting on interest payments to HDFC, Axis Bank
Reliance Capital has defaulted on interest payments on loans worth Rs 624 crore drawn from Housing Development Finance Corporation and Axis Bank, the company informed stock exchanges.
December 01, 2020 / 09:57 AM IST
Reliance Capital share price was down over 3 percent after the company defaulted on interest payments on HDFC and Axis Bank loans.
Anil Ambani-led Reliance Capital has defaulted on interest payments on loans worth Rs 624 crore drawn from Housing Development Finance Corporation (HDFC) and Axis Bank, the company informed stock exchanges on November 27, 2020.
The company has defaulted on Rs 4.77 crore to HDFC and Rs 0.71 crore to Axis in in terms of interest payment as on October 31.
The stock was trading at Rs 9.40, down Rs 0.31, or 3.19 percent at 09:48 hours. It has touched an intraday high of Rs 9.75 and an intraday low of Rs 9.23.
Reliance capital borrowed term loans from HDFC for a period of six months to seven years at 10.6 per cent -13 per cent and from Axis at 3-7 years for 8.25 percent.
In the stock exchange clarification, the company said it is unable to proceed with asset monetisation due to prohibition on the Company to dispose off any assets following court orders. Hence, the delay in debt servicing, it said.
For the September quarter, Reliance Capital reported a huge jump in net losses to Rs 2,577 crore compared with a net loss of Rs 96 crore in the quarter ended September a year ago.
Total consolidated income fell to Rs 4,929 crore in July-September period of 2020-21 from Rs 5,064 crore in the year-ago quarter, Reliance Capital said in a regulatory filing. Total expenses at Rs 7,183 crore exceeded its income during the quarter. The expenses stood at Rs 9,042 crore in the corresponding quarter of last year.