Reliance Cap Posts Profit Of Rs 444 Cr In Q1

Debt-ridden Reliance Capital on Sunday reported coming back in black in the April-June quarter of 2023-24 with a consolidated net profit of Rs 444 crore for the period driven by the good performance of group companies.
    
The financial services firm under the debt resolution process had a net loss of Rs 491 crore in the corresponding quarter of 2022-23. 
    
The company's total income during April-June 2023 stood at Rs 6,001 crore against Rs 3,604 crore in the year-ago quarter, Reliance Capital said in a regulatory filing.
    
Its total expenses rose to Rs 5,560 crore, from Rs 4,068 crore in the first quarter of the previous year.
    
The company has a presence in finance and investment business, general and life insurance, commercial finance and others.
    
The Reserve Bank of India (RBI) on November 29, 2021, superseded the board of Reliance Capital in view of payment defaults and serious governance issues.
    
The RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm.
    
Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under IBC. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
    
The central bank subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of NCLT.
    
In February last year, the RBI-appointed administrator invited expressions of interest for the sale of Reliance Capital.