 "Reliance Infra settles ₹273-crore loan of JR Toll Road with Yes Bank")
Reliance Infrastructure Ltd (RInfra) on Monday said it has fully settled a ₹273-crore loan, including interest, owed by its wholly owned subsidiary JR Toll Road Pvt Ltd (JRTR) to Yes Bank Ltd.
In a regulatory filing, the company said JRTR, together with RInfra acting as the corporate guarantor, signed an addendum to the earlier settlement agreement with Yes Bank. The entire debt obligation has been paid in full, discharging RInfra’s liability as guarantor.
JR Toll Road Pvt Ltd is a special purpose vehicle, incorporated by Reliance Infrastructure, to develop, operate and maintain a 52-km stretch of National Highway 11 between Jaipur and Reengus in Rajasthan. The project had been executed under the Design-Build-Finance-Operate-Transfer (DBFOT) model and involved a four- to six-lane highway. It became operational in 2013, with toll collection beginning the same year.
The highway played a strategic role in improving connectivity between Jaipur and surrounding regions, easing congestion, and supporting economic activity in the corridor. It also formed part of Reliance Infrastructure’s portfolio of road assets built under public–private partnership frameworks.
Why did Yes Bank classify RInfra's loan as an NPA?
The ₹273-crore loan from Yes Bank had previously been classified as a non-performing asset (NPA). According to banking regulations, a loan is treated as an NPA if interest or principal payments remain overdue for more than 90 days. In JRTR’s case, prolonged financial stress and recurring losses had impaired its ability to meet debt obligations on time.
Auditors had noted that the company’s current liabilities exceeded its current assets and that it had initiated arbitration proceedings against the National Highways Authority of India in 2023. This dispute had created further uncertainty around revenue flows from the toll project.
Although the Reserve Bank of India’s pandemic-related moratorium briefly delayed NPA classification, a Delhi High Court ruling in 2020 noted that while the loan account was still standard as of February that year, the company’s financial position remained weak. Over time, the account met multiple criteria for NPA classification under the central bank’s prudential norms.
Following the update, Yes Bank was trading at ₹19.77, up 0.10 per cent on Monday morning at 10:10 am, according to BSE.
Meanwhile, Reliance Infra was trading at ₹374.7 apiece, up 0.39 per cent at the same time.