A day after superseding the board of Anil Ambani promoted Reliance Capital, the Reserve Bank on Tuesday appointed a three-member Advisory Committee to assist the newly appointed administrator of the crisis-ridden NBFC.
The RBI had appointed Nageswara Rao Y, former executive director, Bank of Maharashtra, as the administrator.
Now, the RBI has constituted a three-member Advisory Committee to assist the administrator in discharge of his duties, a central bank’s release said. The members of the Advisory Committee are — Sanjeev Nautiyal, former DMD, State Bank of India; Srinivasan Varadarajan, former DMD, Axis Bank; and Praveen P Kadle, former MD and CEO, Tata Capital Limited.
The RBI will shortly initiate bankruptcy proceedings against Reliance Capital under the Insolvency and Bankruptcy Code (IBC). The Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 provide for the concerned financial sector regulator appointing a Committee of Advisors to advise the administrator.
In September, Reliance Capital in its annual general meeting (AGM) had informed shareholders that the company’s consolidated debt was Rs 40,000 crore. The company reported a consolidated loss of Rs 1,156 crore for the second quarter this fiscal against Rs 6,001 crore income. During 2020-21, the company had posted a loss of Rs 9,287 crore on a total income of Rs 19,308 crore.