Reliance Capital's admin opposes Rs 188 cr provision by Reliance General Insurance

economictimes.indiatimes.com:

Reliance General Insurance Company Ltd made a Rs 118 crore provision in the quarter ending December 2023 to provide a one-time incentive to the senior officials of the company, a move opposed by the administrator of parent Reliance Capital, said people with knowledge of the matter.
Reliance Capital is undergoing corporate insolvency, and Reliance General Insurance is its wholly-owned subsidiary and one of the biggest attractions for buyers among the 20 financial companies under its ambit.
Lenders have unanimously voted for the Rs 9660 crore resolution plan given by Hinduja group's holding company IndusInd International Holdings Ltd, and this is pending approval from the National Company Law Tribunal (NCLT).

The administrator, Y Nageswara Rao, has written to Rakesh Jain, MD and CEO of Reliance Insurance and directors, asking them to reverse the provision and not take any decision or action on distributing the incentives until new management takes charge of the company.

Investors looking for twin engines of quality and growth.

Reliance General Insurance and the administrator of Reliance Capital did not immediately respond to ET's request for comment.

In a board meeting on January 29, Reliance General Insurance passed a resolution to make this provision and review the audit results. It reported a net loss of Rs 33 crore for the quarter ending December 2023 as against a net profit of Rs 80 crore in the corresponding period last year, according to a disclosure made by the company to the stock exchange.

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