Tuesday, February 27, 2024

Religare Finvest Limited (RFL) Is External Debt Free; Clears All Legacy Issues And Is Ready For Business

* The Company completes repayment of over Rs. 9000 crores to country’s banking system.

Religare Enterprises Limited (REL) today announced that its wholly-owned subsidiary, RFL, has successfully cleared all its debts with external lenders, effectively resolving all legacy issues. The debt resolution initiative has resulted in clearing the default status of RFL and has made it external debt-free. It is a significant milestone in its revival journey towards financial stability and operational efficiency. RFL is now ready for fresh lending business. 

RFL diligently repaid over Rs 9,000 crores to the country’s banking system through collections and with the support of REL. Through the One-Time-Settlement (OTS), RFL completed the debt repayment of Rs 2178 crore to 16 external lenders on 8th March 2023, ahead of schedule. 

This debt resolution marks the culmination of efforts of the management to address legacy issues stemming from the misconduct & siphoning off funds from Religare by the erstwhile promoters of REL. 

With the external debt settlement completed, RFL is ready to resume operations with renewed vigour and strategic clarity, aiming to carve a niche for itself in the Micro and Small Enterprise (MSE) lending segment subject to removal of CAP placed by RBI.

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