As per regulatory disclosures, the company has defaulted on repaying Rs 78 lakh to Axis Bank, Rs 1.09 crore to Yes Bank, and Rs 1.25 crore to Lakshmi Vilas Bank.
The mortgage financier was not able to make timely repayments to Bank of Baroda, Punjab National Bank, ICICI Bank, HDFC Bank, Canara Bank, Bank of India and Indian Bank, among others.
Reliance Anil Dhirubhai Ambani Group firm Reliance Power has defaulted on repayments to Axis Bank, Yes Bank and Lakshmi Vilas Bank (LVB) due on January 31, 2020. As per regulatory disclosures, the company has defaulted on repaying Rs 78 lakh to Axis Bank, Rs 1.09 crore to Yes Bank and Rs 1.25 crore to LVB. The firm had taken a loan of Rs 75 crore from Axis Bank, Rs 63 crore from Yes Bank and Rs 20 crore from LVB. Total borrowings from financial institutions stood at Rs 1,350 crore as on March 3, 2021.
Reliance Power had earlier disclosed during the December quarter that the group was confident of meeting its obligations by generating sufficient and timely cashflows through time-bound monetisation of gas-based power plant equipment and other assets of certain subsidiaries. The firm also hopes to realise the amount from ongoing regulatory arbitration claims. “Considering the dependence on these material uncertain events and realisation of assets, the group is confident that such cashflows would enable it to service its debt and discharge its liabilities in the normal course of its business,” Reliance power said.
The power generation firm had posted 6% year-on-year (y-o-y) rise in its consolidated net profit at Rs 52.29 crore during the December quarter. Total income also rose around 6% y-o-y to Rs 2,006.66 crore during the quarter from Rs 1,897.93 crore a year ago.
In November 2020, ICRA had said that the ratings of Reliance Power would continue to remain under ‘issuer non-co-operating category’ since the time it was last rated in August 2019. “The liquidity profile of the company continues to remain poor as evident from considerable decline in its net cash accruals in the last two fiscals and net-worth erosion due to significant impairment of assets,” ICRA had said.