Banking News

religare finvest limited: Religare Finvest concludes One-Time Settlement with lenders, resolves all legacy issues

Religare Enterprises Limited (REL) on Thursday announced that its wholly-owned subsidiary Religare Finvest Limited (RFL), has completed the One-Time-Settlement (OTS) with 16 lenders by making a payment of Rs 400 crores well in advance of the three-month deadline as per the settlement agreement with the lenders.

The settlement is the last milestone for the closure of the legacy issues, which emanated from the misconduct of the erstwhile promoters.

RFL has repaid over Rs 9,000 crores to its lenders from its collections and through the support of REL, since January 2018, when the new management took over.

“This settlement paves the way for restarting the business of RFL and focusing on building a niche in the MSME lending space. RFL will have a healthy balance sheet to sustain business growth in the next few quarters,” stated a press release by the company.

In continuation of its objective of focussing on the rapid growth of its affordable housing finance business, RFL’s subsidiary RHDFCL will be made a direct subsidiary of REL in due course.

“Post the one-time settlement, RFL has embarked on its journey to revive its business, having achieved a critical milestone to strengthen its financials and meet regulatory ratios. Going forward, we will continue to focus on lending to micro and small enterprises (MSMEs) by building a granular book and create a niche for RFL in this critically important segment for growth of the Indian economy,” said Pankaj Sharma, CEO, Religare Finvest Limited.

Source link