Reliance Industries Chairman Mukesh Ambani (File Photo)
Industrialist Mukesh Ambani’s Reliance Industries is not only the most valuable company in the country. Rather it is also one of the most trusted companies because of its credit rating and cash flow. The Reserve Bank of India (RBI) has now expressed the same confidence in Reliance and it has been allowed to keep an extra $ 2 billion (about Rs 16,400 crore) with it for business expansion.
Reliance Industries had raised a loan of $ 5 billion in the last financial year, while the company had only permission to raise a loan of $ 3 billion. Now the Reserve Bank of India has allowed Reliance Industries to keep the extra $ 2 billion with itself.
Will be useful in business expansion
Its permission is required for the use of the amount raised in excess of the limit fixed by RBI. Which has now been received by Reliance Industries. Mukesh Ambani’s company will now use this extra money to expand its new energy and telecom business. It will also be used to meet the requirement of working capital.
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Sources informed that in view of Reliance’s strong credit rating and cash flow, it has been allowed to use this extra money.
Banks of the world want to give money to Reliance
In view of the strong financials of Reliance Industries, banks around the world were willing to give loans to the company in March. Banks were offering loans to the company even after two rounds of loan syndication, so the company decided to keep the money received in excess of the limit with itself.
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This is not the first time, when such permission has been given by RBI to raise loan. At the same time, earlier Reliance has also sought such permission from RBI. Although nothing has been officially done by RBI and Reliance in this regard.
