Reliance Capital hives off commercial finance business

MUMBAI: Reliance Capital today hived off its commercial finance devisio into a separate subsidiary.

"The shareholders of Reliance Capital have approved the transfer of its commercial finance division – Reliance Commercial Finance (RCF) - into a separate wholly owned subsidiary," said the company in a statement.

The transfer was approved by an overwhelming majority of 99.99 per cent votes in favour of the scheme of arrangement at the court-convened general shareholders meeting held on September 10, 2016, company said.

RCF is amongst the leading SME lenders in the Indian non-banking finance space with a focus on asset backed lending and productive asset creation.

The Company has asset under management including securitized portfolio) portfolio of Rs 16,451 crore as of June 30, 2016.

"This transfer will align RCF with overall operating structure of Reliance Capital where all operating businesses are held in its wholly or majority owned subsidiaries," said Sam Ghosh, ED & Group CEO, Reliance Capital. "The proposal will enhance management focus and also provide flexibility to the Company to unlock value through stake sale".