Reliance Capital had borrowed a loan of Rs 524 crore from HDFC and Rs 101 crore from Axis Bank for which it failed to make interest payments for the fourth month in a row now. In a stock exchange notification, the company disclosed that it could not make an interest payment of Rs 4.6 crore to HDFC and Rs 68 lakh to Axis Bank respectively.
Reliance Capital has recorded a net loss of Rs 2,179 crore in the March quarter, which stood at Rs 2,304 crore in the same period a year ago.
The company had earlier defaulted payments on Non- Convertible Debentures maturing April 22. The total outstanding debt for the company currently stands as Rs 19,248 crore. Owing to the legal hurdles Reliance Capital could not proceed with its asset monetisation.
The CARE Ratings in September 2019 had also downgraded Reliance Capital’s Rs 17,000 crore debt to a default grade of ‘D’. The action was a result of the company delaying its payments to several NCDs that it had issued.