No Ripple Effect: Reliance Infrastructure Clarifies SBI Action on RCom Loan Has Zero Impact

Image Source : ETV Bharat

Amid market jitters triggered by the State Bank of India’s classification of Reliance Communications’ loan account as fraud, Reliance Infrastructure Ltd has issued a firm clarification stating that the action has no bearing on its operations, financials, or governance. The announcement comes as shares of Reliance Infra and Reliance Power saw a temporary dip, reflecting investor confusion over grouplevel implications.

Key Developments and Clarification

SBI recently flagged Reliance Communications’ Rs 31,580 crore loan account as fraud, citing fund diversion and irregularities
The bank also plans to report former RCom director Anil Ambani to the Reserve Bank of India
Reliance Infrastructure clarified that it is a separate legal entity with no financial exposure or operational link to the flagged transactions
The company emphasized that its governance, compliance, and financial systems remain unaffected by the SBI action

Market Reaction and Investor Sentiment

Reliance Infra shares fell by 5.12 percent to Rs 377.45, while Reliance Power dropped 4.89 percent to Rs 64.75 on the BSE
The dip was attributed to investor concerns over potential contagion across Anil Ambaniled entities
Analysts expect the clarification to stabilize sentiment, noting that Reliance Infra’s fundamentals remain intact

Legal and Regulatory Context

RCom is currently under insolvency proceedings, with its assets managed by a resolution professional since 2019
SBI’s fraud classification pertains to transactions prior to the insolvency process and does not implicate Reliance Infrastructure
Legal representatives for Anil Ambani have challenged the SBI action, citing lack of due process and outdated notices

Forward Outlook

Reliance Infrastructure continues to focus on its core businesses in power, infrastructure, and defense
The company reiterated its commitment to transparency and regulatory compliance
Investors are advised to distinguish between group entities and assess each company on its individual merits

As Reliance Infrastructure distances itself from the RCom controversy, the episode underscores the importance of clear corporate boundaries—where legal separation and operational independence shield companies from reputational spillovers.

Sources: Republic World, Times of India, Business Standard, MSN News, New Indian Express, Economic Times, Hindustan Times

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