Reliance-Future Group deal to save lenders from Rs 12,000-crore hit

The financial instruments of Future group have gone through multiple rating downgrades in recent months due to the delay in payments

The deal involving the sale of some of Future Group’s businesses to Reliance Industries will protect their interest and principal, its lenders have said.

This is expected to save them from a hit on the loans portfolio of more than Rs 12,000 crore. 

While the deal would help the group avert a crisis, banks would be cautious in financing entities in its tent, said senior bankers involved in corporate lending.

Future group entities were standard assets but became stressed due to liquidity pressure. It is a case of business failure due to the pandemic, said a top executive with a private bank.

The loans