Business

Reliance Industries Gets A Nod From The RBI to Retain $2 Billion Surplus From Lenders

Ambani-led Reliance Industries Ltd has obtained a nod from the Reserve Bank of India to retain $2 billion, over and above the $3 billion it raised last financial year. The permission was granted in order for the company to expand operations.

RIL had sought approval from the Central bank as the amount composed was over the limits mandated by Mint Road. As per the Economic Times report, Reliance Industries intends to utilize the money to fund working capital needs in addition to expanding its new energy and telecom businesses.

The source quoted in the report stated that as a result of Reliance’s strong credit rating and cash flow, “banks across the globe wanted to participate in the loan exercise back in March.” Following this the source added that post two rounds of syndication, there was still money available that banks were willing to offer due to the loan’s high demand. Hence, the company decided to hold back more than required. This is not the first time the RBI has authorized a similar increase. It was not the first time for the company to seek special permission from RBI. The central has granted special permission to Reliance before as well.

Another source cited in the report said, “RIL had approached the RBI to retain the $2 billion over and above the $3 billion it had sought to raise last fiscal. These approvals are granted on a case-by-case basis as the company has to make a sound business case to raise this kind of money.” The official further added that the company attained approval earlier this month and it will withdraw the additional funds later this month.

For the unversed, as per the Reserve Bank of India’s rules on External Commercial Borrowings (ECO), a company is allowed to avail up to $75 million per fiscal year. In order to go beyond this limit, organizations need to seek special permission to raise money abroad.

Also Read: HDFC AMC shares jump 9% After Ardn Management Offloads Its Entire Stake In The Company

Malika Sahni

Recent Posts

Seeing The Lord Among Devotees Is The Pinnacle Of Humility: Gautam Adani At Rath Yatra

Gautam Adani, along with his wife and Karan, participated in the Rath Yatra in Puri,…

41 mins ago

PM Modi Interacts With Group Captain Shubhanshu Shukla Aboard The ISS

PM Narendra Modi interacted with Group Captain Shubhanshu Shukla, the first Indian to reach the…

2 hours ago

Gautam Adani, Family Participate In Puri Rath Yatra; Launch Massive ‘Prasad Seva’ Initiative

Gautam Adani, along with his wife Priti Adani and son Karan Adani, joined thousands of…

2 hours ago

PM Modi, Leaders Pay Tribute To Former PM PV Narasimha Rao On Birth Anniversary

PM Narendra Modi on Saturday paid tribute to former Prime Minister PV Narasimha Rao on…

3 hours ago

Gautam Adani Hails Divine Experience At Rath Yatra; Praises Odisha’s Graceful Management

Gautam Adani conveyed profound spiritual emotions after witnessing the revered Rath Yatra of Lord Jagannath…

3 hours ago

Punjab’s Litchis Reach Middle East Markets In Boost To India’s Fruit Exports

In a step towards diversifying India’s horticultural exports, Punjab has successfully shipped its first consignment…

3 hours ago