Religare Enterprises Q1 net loss widens to Rs 17 cr

Religare Enterprises has reported a standalone net loss of Rs 17.07 crore for the quarter ended June.

The company had posted a loss of Rs 14.05 crore in the corresponding period of 2017-18.

Total revenues fell to Rs 5.95 crore during the quarter under review as against Rs 18.02 crore in the year ago period, the company said in a regulatory filing Wednesday.

Additionally, Religare Enterprises said the net worth of its subsidiary Religare Finvest (RFL) continues to decline. The RBI has also put restrictions on RFL regarding expansion of credit/investment portfolio and dividend outflow from the subsidiary company.

"Further RFL has filed the petition before NCLT for recovery of dues from entities included in the unsecured corporate loan book of Rs 2036.70 crore and adjustment of fixed deposit of Rs 791.45 crore by RFL by Lakshmi Vilas Bank against the loans granted by LVB to RHC Holding and Ranchem Pvt Ltd, which is contested by RFL in Delhi High Court," it said.

Both the matters are pending for disposal, it said.

Religare Enterprises said the management of RFL is in the process of finalisation of the impact of expected credit loss on the entire credit portfolio including this corporate loan book of Rs 2036.70 crore and deposit with LVB of Rs 791.45 crore.

Lakshmi Vilas Bank in June said the adjustment of over Rs 790 crore deposits of Religare Finvest, held as security for loans taken by other two firms, was legal and the bank is fighting the case in the court appropriately.

However, Religare refuted the same saying its subsidiary Religare Finvest never created any security over its deposits of Rs 794 crore with Lakshmi Vilas Bank, which the lender has held against loan defaults by third parties RHC Holding and Ranchem Pvt Ltd.

Stock of Religare Enterprises closed 0.64 per cent up at Rs 47 on BSE.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)