Specialist in Indian Banking and Economic Research

Hemindra Hazari

Is a Securities & Exchange Board of India (SEBI) registered research analyst with over 25 years experience in the Indian capital markets with a specialization in banking and economy research and has managerial experience of establishing profitable equities business, leading and mentoring analysts.  He has worked with prominent foreign and domestic capital market firms such as UBS, Societe Generale, HSBC, ASK Raymond James  and Karvy Stock  Broking and is a regular guest on business media channels and is respected for his non-consensus view on stocks and the market.

Reliance Communications: Waiting to Exhale

Reliance Communications Ltd. •Too Few Steps Forward•

Reliance Communications Ltd: A Complete Mess

<p>Anil Ambani, chairman, <a href="https://www.smartkarma.com/entities/5197" target="_blank" data-smartkarma-citation="entities:5197:1">Reliance Communications Ltd (RCOM IN)</a>, sounded optimistic at a press conference on December 26, 2017, stating that the company will exit the Strategic Debt Restructuring (SDR) with a zero write-off to lenders, as the company plans to monetize its wireless operations by January-March 2018 and settle its dues. The truth, however, is that banks are preparing to classify the company as a non-performing asset (NPA) if their dues are not paid by December 31. The banking sector has a funded exposure of around Rs 380 bn to the company, and will have to provide 10% (5% already provided at the time of SDR) of their exposure for the quarter ended December if it is classified as NPA.</p>

Anil Ambani, chairman, Reliance Communications Ltd (RCOM IN), sounded optimistic at a press conference on December 26, 2017, stating that the company will exit the Strategic Debt Restructuring (SDR) with a zero write-off to lenders, as the company plans to monetize its wireless operations by January-March 2018 and settle its dues. The truth, however, is that banks are preparing to classify the company as a non-performing asset (NPA) if their dues are not paid by December 31. The banking sector has a funded exposure of around Rs 380 bn to the company, and will have to provide 10% (5% already provided at the time of SDR) of their exposure for the quarter ended December if it is classified as NPA.

Mysterious Saviour for Reliance Communications?