Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Monday, November 24, 2008

Reliance Capital to set up Islamic fund management co in Malaysia

The Anil Ambani group-controlled Reliance Capital Asset Management Ltd (RCAML) said on Friday that it will establish an international
Islamic fund management company in Malaysia.

The leading asset management company recently received an in-principle approval from the Securities Commission of Malaysia to establish the fund management firm.

Reliance Capital now holds the unique distinction of being the fifth company in the world and the first in India to be allotted the coveted mandate, a release said here.

"We are proud to be the first company from India and the fifth in the world to be given this opportunity. We are the No 1 mutual fund house in India and the new opportunity is in line with our ambition to be one of the leading players globally," Reliance Capital CEO Vikrant Gugnani said in a statement.

Reliance Capital is managing a corpus of over Rs 71,093 crore as on October 31 for over 70 lakh investors. It offers investors a well-rounded portfolio of products to meet varying investor requirements and has a presence in over 400 cities across the country.

Friday, November 14, 2008

Rel Money eyes new Nigerian exchange

Reliance Money, the brokerage company of Reliance Capital, is in advanced stages of negotiations to pick up a majority stake in an
upcoming commodity and currency trading exchange in Nigeria. This comes close on the heels of the R-ADAG firm picking up a 15% equity stake in Hong Kong Mercantile Exchange(HKMEx).

The proposed Nigerian exchange is expected to start trading by the second quarter of 2009. It would begin with commodity and currency contracts and may eventually evolve as a full-fledged trading exchange offering equity trading as well.

While Reliance Money would hold the majority stake, local business groups would be brought in as minority partners in the venture. Unlike HKMEx, where the local government has a stake, the Nigerian exchange would be a private enterprise.

When contacted by ET, Reliance Money CEO Sudip Bandyopadhyay said: “We are looking at various growth opportunities abroad. We will announce them as and when we finalise something.” There is already a stock exchange in Lagos.

The deal would mean an expansion of operations in Nigeria for Reliance Money. Earlier this year, the company had entered into a tie-up with Lagos-based industrial group — the Chellarams, for distribution of financial products and services.

The transaction is part of the global expansion strategy of Reliance Money, which is also in the process of starting full-fledged financial services operations through a JV in Saudi Arabia and has plans to expand its business in over 15 countries spread across Europe, North Africa, the Middle East and South East Asia by March 2009.

Reliance Capital unit stops fresh loans

Reliance Consumer Finance, a unit of Reliance Capital Ltd, has stopped giving fresh loans due to the tightening local liquidity conditions, a newspaper report said on Saturday quoting a top company official.

Reliance Consumer joins other financial lenders such as Shriram Transport Finance Co Ltd and Indiabulls Financial Services Ltd in clamping down on 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.

Company officials could not be immediately reached for comment.

Reliance Capital is part of the Anil Dhirubhai Ambani group and runs India's largest asset management firm, a stock brokerage and insurance businesses.

Thursday, November 13, 2008

Reliance Capital Q2 net up 15% at Rs229 cr

Anil Dhirubhai Ambani Group firm Reliance Capital said its net profit grew by 15% to Rs229.4 crore and total operating income rose by 38% to Rs1,313 crore for the second quarter ended 30 September, compared with the year-ago period.
The company had a net profit of Rs200.10 crore in the September quarter last fiscal, Reliance Capital said in a filing to the Bombay Stock Exchange.
As on 30 September, Reliance Capital’s net worth stood at Rs7,068.20 crore, making it one among the top three Indian private sector financial services groups in terms of net worth, it added.
The company’s total assets stood at Rs22,133 crore, while its earnings per share rose by 15% to Rs9.34 during the quarter.
During the half year ended 30 September, Reliance Capital reported a net profit of Rs572.50 crore, a 9% growth over the year-ago period. The firm had a net profit of Rs525.30 crore in the corresponding period last fiscal.
The total operating income rose by 34% to Rs2,856.30 crore in the first half of the current fiscal.
The investment portfolio as on 30 September amounted to Rs7,287 crore at cost, it said.
The company does not have exposure to money and forex derivative market, the filing added.
Further, the group’s financial products distribution firm Reliance Money’s net profit for the September quarter stood at Rs19 crore, while its revenue rose by 128% at Rs93 crore.