Reliance Stops Making New Consumer Loans
Anil Ambani controlled Reliance Consumer Finance; the consumer lending division of ADAG unit Reliance Capital stopped making fresh loans effective last week the Reuters news agency reported citing the Hindustan Times as its source.
The company has ceased new lending owing to tightening liquidity conditions in the Indian financial landscape. RCF joins a slew of other Indian consumer non banking financial companies (NBFC’s) that have had to tighten or stop making new loans altogether. In recent months Shriram Transport Finance and Indiabulls Financial Services have both refrained from making new loans.
“In light of the prevailing market conditions, we deliberately slowed down the growth till September 2008,” Sam Ghosh, chief executive officer of Reliance Capital, was quoted by the Hindustan Times daily as saying.
“In fact, beginning October, we have put on hold further disbursals and will review resumption as the situation in the credit markets improve,” he said. “Wherever we had made commitments earlier, we are lending,” Ghosh added.
Reliance has cut its personal loans portfolio to 13 percent of the total loan book against 15 percent at the end of June, the report added.
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