Reliance Capital Chairman Anil Ambani on Monday in the Annual General Meeting (AGM) of the company said the company will no longer be in the lending business and its subsidiaries Reliance General Insurance and Reliance Nippon Life Insurance will be the creators of long term shareholder value.
Instead, the company will be a financial shareholder in Reliance Home Finance and Reliance Commercial Finance. Ambani also said the company has suffered over the last six months as collateral damage due to crisis in the financial services industry, irrational action of rating agencies and auditors and slowdown in the economy. This was further exacerbated by "reckless selling".
Elaborating on the transformation and future plans for the troubled company, Ambai at the AGM said that he expects the resolution plans for Reliance Home Finance and Reliance Commercial Finance to be completed by December this year. "This will bring lower the Reliance Capital debt by about Rs 25,000 crore," he said.
Ambani said the Reliance Group has repaid over ₹35,000 crore in the past four months and will repay another ₹ 15,000 crore by March 2020. In all, by monetising of assets and cash flow, the group will have repaid ₹50,000 crore in all.