Money & Banking

Reliance Home Finance Q1 net loss widens to ₹287.50 crore

Our Bureau Mumbai | Updated on July 31, 2021

The NBFC has defaulted in payment obligations amounting to ₹8,217.47 crore as on June 30, 2021

Reliance Home Finance net loss widened to ₹287.53 crore for the quarter ended June 30, 2021 as compared to a net loss of ₹161.34 crore in the corresponding period last fiscal.

The company’s total revenue from operations fell by 46.9 per cent to ₹129.5 crore in the first quarter of the fiscal from ₹243.84 crore a year ago.

Impairment on financial instruments also rose to ₹233.86 crore in the first quarter of the fiscal as against ₹160.79 crore a year ago.

The company’s lenders had approved Authum Investment and Infrastructure Limited (Authum) as the final bidder on June 19, 2021 as part of its resolution process.

“The company has shared the final resolution plan along with the distribution mechanism with the debenture trustees to call for the debenture holder’s meeting and seek approval on the resolution plan along with the distribution mechanism,” Reliance Home Finance said in its results.

According to the auditor’s note, the company has defaulted in payment of borrowings obligations amounting to ₹8,217.47 crore as on June 30, 2021 and the asset cover has also fallen below 100 per cent of outstanding debentures amounting to ₹5,967 crore.

Published on July 31, 2021

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