Reliance Capital, a constituent of Nifty Midcap 50 and MSCI Global Small Cap Index, is a part of the

Hinduja Group Hinduja Group is an Indian Conglomerate (company), conglomerate. The group is present in eleven sectors including automotive, oil and specialty chemicals, banking and finance, IT and ITeS, cyber security, healthcare, trading, infrastructure proj ...

. It is amongst India's leading and most valuable financial services companies in the private sector. As on 31 March 2017, the net worth of the company stood at crore, while its total assets as on the date stood at crore. In Fortune India 500 list of 2018, Reliance Capital was ranked as the 77th largest corporation in India with 5th rank in 'Non-Banking Finance' category. Reliance Capital has businesses in

asset management Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process or manufacturing plants, infrastr ...

mutual funds A mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investmen ...

life insurance Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typical ...

and

general insurance General insurance or non-life insurance policy, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determine ...

, commercial finance, home finance, stock broking,

wealth management Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-hi ...

services, distribution of financial products,

private equity Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...

, asset reconstruction, proprietary investments and other activities in financial services. The company operates across India and has over 20 million customers and workforce of approximately 15,595 as of 1 May 2017.

Anil Ambani Anil Dhirubhai Ambani (born 4 June 1959) is an Indian billionaire, businessman, chairman, and managing director of Reliance Group (a.k.a. Reliance ADA Group). The Reliance Group was created in July 2006 following a demerger from Reliance Indus ...

, promoter of Reliance Group is the Chairman of Reliance Capital, while Amitabh Jhunjhunwala is the Vice-Chairman and Anmol Ambani as the Executive Director. The

Reserve Bank of India Reserve Bank of India, abbreviated as RBI, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian rupee, Indian currency. Owned by the Ministry of Finance (India), Min ...

(RBI) had on 29 November 2021 superseded the board of Reliance Capital in view of payment defaults and serious governance issues. As of November 2022, the company is under the control of the Reserve Bank of India

History

Reliance Capital Limited was incorporated in 1986 at

Ahmedabad Ahmedabad ( ), also spelled Amdavad (), is the most populous city in the Indian state of Gujarat. It is the administrative headquarters of the Ahmedabad district and the seat of the Gujarat High Court. Ahmedabad's population of 5,570,585 ...

Gujarat Gujarat () is a States of India, state along the Western India, western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the List of states and union territories ...

as Reliance Capital & Finance Trust Limited. The name Reliance Capital came into effect on 5 January 1995. In 2002, Reliance Capital Ltd shifted its registered office to Jamnagar in Gujarat before it finally moved to

Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...

Maharashtra Maharashtra () is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. It is bordered by the Arabian Sea to the west, the Indian states of Karnataka and Goa to the south, Telangana to th ...

, in 2006. In 2006, Reliance Capital Ventures Limited merged with Reliance Capital. With this merger the shareholder base of Reliance Capital rose from 0.15 million shareholders to 1.3 million. Reliance Capital entered the capital market with a maiden public issue in 1990 and in subsequent years further tapped the capital market through rights issue and public issues. The equity shares were initially listed on the Ahmedabad Stock Exchange and the Stock Exchange Mumbai. The equity shares are listed on the Stock Exchange Mumbai and the National Stock Exchange of India. In June 2019, auditors of PwC resigned citing that they weren't allowed to carry on their audits if Reliance Capital prevented it from exercising independent judgment in making a report to the members of the company. In a recent development, the auditors revealed that the recoverables of Rs. 7083 crore were actually inter corporate deposits of other Reliance group companies that were being diverted. On the other hand, Reliance has claimed that there has been no diversion of money; zero loans and or liquidity have been provided by any lender in the PwC audited period. Reliance Capital is confident that the report of the continuing auditor will establish that there were no irregularities.

Non-banking finance company

Reliance Capital obtained its registration as a non-banking finance company (NBFC) in December 1998. It has since diversified its activities in the areas of asset management, life and general insurance, commercial finance, stock broking, private equity and proprietary investments, asset reconstruction, distribution of financial products and other activities in financial services.

Credit rating

Reliance Capital has a net debt equity ratio of 1.88 as of 31 March 2017. It is one of the top rated Indian financial institutions and has the highest ratings of 'A1+’ by ICRA and CRISIL for its short term borrowing program, and 'CARE D' by CARE for its long term borrowing program.

Operations

Reliance Capital offers a range of financial services in many business lines. The company is one of the most diversified financial services firms in India with interests expanding from asset management, insurance, commercial finance, broking, private equity to other niche financial services. Its prominent businesses are as follows:

Reliance General Insurance

Reliance General Insurance Company Limited is an Indian

insurance company Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...

, part of Reliance Capital Ltd. The firm has a 7.3% market share in the private sector and has the largest agency channel, with over 24,500 agents. The CEO and Executive Director is Rakesh Jain. The company has strengthened and diversified its distribution network by forging partnerships with major banks. Reliance General Insurance is an active participant in various government crop insurance schemes, including the Pradhan Mantri Fasal Bima Yojna, and has insured over 3 million farmers under this financial inclusion initiative. The total gross written premium (GWP) for the year which ended 31 March 2017, was . Reliance General Insurance (RGI) offers insurance for auto, health, home, property, travel, marine, commercial and other specialty products.

Reliance Commercial Finance

Reliance Commercial Finance is among the leading lenders in the Indian non-banking finance sector. The CEO and Executive Director of the company is Devang Mody. The company has an operational presence of over 44 locations in India and an AUM of 16759 Cr. as in March 2017. Reliance Commercial Finance offers a wide range of products which include business expansion loans, property loans, vehicle loans, construction equipment loans, infrastructure, microfinance and agriculture loans. The company had a loan book at ₹124.36 billion (US$2.1 billion) as on 31 March 2017, with over 268,278 customers (including microfinance) across India.

Reliance Home Finance Limited

Ravindra Sudhalkar is the CEO and Executive Director of the company. Reliance Home Finance Limited (RHF), a 100% subsidiary of Reliance Capital, provides home loans, LAP, construction finance, and affordable housing loans. The company has over 1,750 distributors serving over 33,300 customers across 90 locations, through a

hub and spoke A hub is the central part of a wheel that connects the axle to the wheel itself. Hub, HUB, or hubs may refer to: Geography Pakistan * Hub Tehsil, Balochistan, an administrative division of southern pakistan ** Hub, Balochistan, capital city o ...

model, across the country. The company filed for

IPO An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

in 2017 and the shares got listed on National Stock Exchange of India Limited and BSE Limited in the same year. The stock price recorded a fall of more than 95% within 2 years of its

Reliance Securities

Reliance Securities, the broking and distribution arm of Reliance Capital, is one of India's leading retail broking houses. B Gopkumar is the Chief Executive Officer and Executive Director of its broking and distribution business. The distribution business has approximately 80 branches across India.

Reliance Asset Reconstruction

Reliance Asset Reconstruction is an asset reconstruction company, the principal sponsor/shareholder of which is

Reliance Group Reliance Group (stylized as ReLIΛNCe) is an Indian conglomerate, headquartered in Mumbai, India. The company, which was formed after Dhirubhai Ambani's business was divided up, is headed by his younger son Anil Ambani. Reliance Group has ...

(through Reliance Capital). The AUM as on 31 March 2017, stands at Rs. 1,829 crore (previous year: Rs. 1488 crore).

Reliance Health Insurance

Ravi Vishwanath is the CEO and Executive Director of Reliance Health Insurance. Reliance Health Insurance is a Standalone

Health Insurance Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...

Company promoted solely by Reliance Capital It was established on 7 May 2017. The company is headquartered in

Mumbai, Maharashtra Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12.5& ...

and has started operations on 10 December 2018.

Major deals

In 2011, Reliance Capital sold 26% stake in its life insurance business, Reliance Life Insurance, to Nippon Life Insurance (Nissay), amongst the world's largest life insurers, with an AUM of over $600 billion. The transaction was completed at Rs. 3,082 crore for a 26 per cent stake, valuing Reliance Life Insurance at $2.6 billion. In 2012, Nippon Life Insurance bought 26% stake in Reliance Capital Asset Management for Rs. 1,450 crore. Reports indicate that Reliance Capital is also planning to sell a 26% stake in its general insurance business, Reliance General Insurance, at an appropriate time. India's leading financial daily ''Economic Times'' wrote, "Since Reliance General Insurance is one of the leading players with 8.4 per cent market share, the proposed stake sale is expected to generate handsome capital gains for Reliance Capital... Besides de-leveraging the balance sheet, the ongoing restructuring should also help Reliance Capital conserve capital and generate better return ratios." Reliance Capital in July 2014 announced the merger of its global film and media services business with Prime Focus to create an entity with a combined turnover of over Rs 1,800 crore. In July 2017, it sold its 1% share in Paytm to China's Alibaba Group for Rs 275 crore, making a profit of 2,600%. In September 2019, it sold 21.54% stake in Reliance Nippon Life Asset Management to

Nippon Life Insurance Company , also known as or is the largest Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea ...

alongside completely exiting its entire stake in wholly owned subsidiaries Reliance Capital Trustee Co and Reliance Capital AIF Trustee Company.

References

External links

* {{Insurance in India Financial services companies of India Reliance Group Financial services companies based in Mumbai Financial services companies established in 1986 1986 establishments in Maharashtra Indian companies established in 1986 Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange Asset management companies