Mumbai, Sep 30 (IANS) As part of its transformation process, Reliance Capital will exit its lending businesses.
Addressing the company’s AGM, Reliance Group Chairman Anil Ambani on Monday said: “As part of the transformation process, Reliance Capital will no longer be in the lending businesses.”
“Both the lending businesses — Reliance Commercial Finance and Reliance Home Finance — between the two have an asset base of over Rs 25,000 crore.”
According to Ambani, RCF and RHF are working closely with lenders to finalise the resolution plan which is expected to be completed in the next few months by December.
“Reliance Capital will only be a financial shareholder in both these companies to reconverge shareholder value under a new management and shareholding structure and effectively reduce debt of Reliance Capital Group by Rs 25,000 crore.”
Besides, he pointed out that in the last six months the company has suffered collateral damage due to combination of factors “whether it was the crisis in the Financial Services sector, irrational action by Auditors and Rating Agencies, or now recognized temporary slowdown of the Indian economy.
“These events aided and abated by reckless selling and rumour mongering by vested parties to affect the general public psychology especially shareowners like you.”
However, the company’s retail shareholders increased by over 10 lakh in the last 6 months.