Reliance Capital Sets Fd Rates, Allowed To Raise Rs 2000 Cr

Reliance Capital has finalised the following pattern of annualised returns for its fixed deposit schemes: 15 per cent for one year, 16 per cent for two years, 18 per cent for three years, 19 per cent for four years and 20 per cent for five years. The company board met yesterday to finalise the interest rates on fixed deposits.

According to a Reliance Capital spokesperson, the annualised yield works out to 29.77 per cent at the end of five years. The RBI permission allows us to raise about twice that of our net worth through the FD route. That means we will be raising about Rs 2,000 crore through this route, the spokesperson said.

 

We have been rated AAA by CARE for the fixed deposit programme. Our debt-equity ratio is very low, and stands at about 0.1:1. This should give depositors a level of comfort. The yield to the investor will be higher than the deep discount bonds on offer by other companies or financial institutions.

For instance, in the bond issues offered by Tisco and L&T, the yield works out to

around 16.75 to 17.25 per cent. However, we will be offering 20 per cent without actually subjecting our investors through formalities that involve a public issue of bonds, the spokesperson said.

The company's debt component stands at around Rs 125 crore, providing it adequate leverage to raise funds from borrowings. The company has already applied to the ministry of finance for raising a foreign currency loan of $100 million. However, the application is pending.