Reliance Capital defaults on interest payments on loans from HDFC and Axis Bank
Reliance Capital, the Anil Ambani firm, has defaulted on interest payments on loans from HDFC and Axis Bank. In a regulatory filing to the stock exchanges on Monday, Reliance Capital said it could not make interest payments of Rs 4.77 crore to HDFC and Rs 71 lakh to Axis Bank.
The company had borrowed Rs 523.98 crore from HDFC at an interest rate of 10.60-13 per cent per annum for tenures between six months to seven years and
Rs 100.63 crore from Axis Bank at an interest rate of 8.25 per cent per annum for a period of 3-7 years, the filings showed.
Shares of Reliance Capital on Wednesday ended nearly 5 per cent down at Rs 9.23 on the BSE.
Reliance Capital said it is unable to proceed with its asset monetisation plans resulting in delay in debt servicing because of the prohibition to dispose of any assets except in the ordinary course of business such as payment of salary and statutory dues following an order dated November 20, 2019.