Reliance Home Finance’s quarterly loss widens to Rs 340 crore

Company’s expenses jumped to Rs 688.97 1 crore as against Rs 549.03 crore in Q3 FY20. (Photo: FB)


Reliance Home Finance’s quarterly net loss for FY2020-21 on a year-on-year (YoY) basis rose to Rs 339.55 crore. The company had posted a loss of Rs 73.52 crore in the corresponding period of the previous fiscal year.

Total income of Reliance Home Finance, part of Anil Ambani-promoted Reliance Group, fell to Rs 174.66 crore in the quarter under review from Rs 442.03 crore in the same period of 2019-20.

Income from interest also plunged to Rs 170.94 crore from Rs 424.22 crore earlier.

However, company’s expenses jumped to Rs 688.97 1 crore as against Rs 549.03 crore in Q3 FY20.

In December, lenders to troubled the mortgage firm extended the inter-creditor agreement (ICA) for another three months.

“The lenders of the company forming part of the Inter creditor Agreement (ICA), executed pursuant to the Reserve Bank of India (RBI) circular dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets, have extended the ICA period till March 31, 2021,” the company had said in a regulatory filing.

The company had received bids from six suitors as part of the debt resolution process. Of the six bidders, only two submitted compliant and binding bids while four bids are non-binding and not compliant with bid conditions.

Retail disbursements of Reliance Home Finance had plunged amid tightening liquidity following the collapse of Infrastructure Leasing & Financial Services (IL&FS) in 2018, and significant debt repayments during September 2018 to February 2019 period.