The company could not make interest payment of Rs 4.6 crore to HDFC and Rs 68 lakh to Axis Bank on April 30, Reliance Capital disclosed on Monday in a stock exchange notification.
Reliance Capital has defaulted on term loan payments to Housing Development Finance Corporation (HDFC) and Axis Bank for the fourth month in a row. The company could not make interest payment of Rs 4.6 crore to HDFC and Rs 68 lakh to Axis Bank on April 30, Reliance Capital disclosed on Monday in a stock exchange notification. The company had earlier missed monthly instalments of HDFC and Axis Bank on January 31, February 29 and March 31 this year.
Reliance Capital had taken a loan of Rs 524 crore from HDFC and Rs 101 crore from Axis Bank. The total outstanding debt of the company stands at Rs 19,248 crore till April 30. Reliance Capital had earlier defaulted in making payment for non-convertible debentures (NCDs) maturing on April 22. According to PRIME Database, it needed to make payment of Rs 1,070 crore for NCDs.
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The company cited legal hurdles for not being able to proceed with its asset monetisation in its release issued on Monday.
Reliance Capital had reported a consolidated net loss of Rs 2,179 crore in March quarter, against a net loss of Rs 2,304 crore in the same period a year ago. Its total income fell 31.4% to Rs 356 crore in the quarter ended March 31 from Rs 519 crore in the same quarter last year.
In September 2019, CARE Ratings had downgraded Reliance Capital’s Rs 17,000-crore debt to default grade ‘D’. The agency attributed its action to the company delaying by a day its payment on several NCDs it had issued.