Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Reliance Capital to Exit Lending Business, Shares Hit Two-decade Low

In June, auditors raised several red flags around the company's fourth-quarter results, including a lack of clarity in related party transactions and accounting methodology.

Reuters

Updated:September 30, 2019, 12:09 PM IST
facebookTwitterskypewhatsapp
Reliance Capital to Exit Lending Business, Shares Hit Two-decade Low
File photo of Anil Ambani.

Mumbai: Reliance Capital Ltd will exit the lending business, group Chairman Anil Ambani said on Monday, sending its shares to over two-decade low.

This comes as the non-banking financial company faced "collateral damage" due to a slowing economy and a lending crisis in the sector, Ambani said at the company's annual general meeting.

In June, auditors raised several red flags around the company's fourth-quarter results, including a lack of clarity in related party transactions and accounting methodology.

Reliance Capital currently lends to small and medium enterprises through unit Reliance Money and to home buyers via Reliance home finance. Both these businesses accounted for about 15% of the company's revenue last financial year.

Apart from lending, Reliance Capital has interests in asset management and general insurance businesses.

The company has been divesting assets this year. It reduced its stake in asset management arm Reliance Nippon Life Asset Management Ltd to just over 4% from about a quarter.

"It is unfortunate that during all this noise, the true value of our businesses has not been recognised," Ambani said.

Shares of Reliance Capital, which have lost about 99% of their value since hitting an all-time high in January 2008, slumped as much as 13.6% on Monday to their lowest since March 30, 1999 and were last down 9.5%.​

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,087.75 -0.73
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results