Reliance Capital Records Q2 Net Loss Of Rs 239 Cr

Reliance Capital reported a consolidated net loss of Rs 239 crore for the quarter ending 30 September 2023-24, a stark contrast to the net profit of Rs 215 crore in the same period of the previous year. The financial data was disclosed in a regulatory filing.

The company's total income for the second quarter reached Rs 6,393 crore, marking an increase from Rs 5,796 crore in the corresponding period of the previous year. However, total expenses also surged, rising to Rs 6,679 crore compared to Rs 5,756 crore in the same quarter a year ago.

On a standalone basis, Reliance Capital's loss widened to Rs 442 crore, a substantial increase from the Rs 26 crore loss reported a year earlier.

Reliance Capital has been mired in insolvency proceedings since 29 November 2021, following the Reserve Bank of India's (RBI) decision to supersede the company's board due to payment defaults and severe governance issues. Nageswara Rao Y was appointed by the RBI to oversee the corporate insolvency resolution process for the company.

Notably, Reliance Capital is the third major non-banking financial company against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC).