NEW DELHI: Religare has undergone a remarkable transformation, emerging as a diversified financial services conglomerate known as ‘Religare 2.0.’
Dr. Rashmi Saluja, executive chairperson of Religare Enterprises, emphasized the crucial role of the company’s strategic initiatives in reshaping its core businesses, spanning health insurance, lending, and stock broking.
“The key to this transformation lies in a meticulous allocation of essential resources, both financial and human, tailored to meet the unique needs of each business unit,” Dr. Saluja stated.
Despite facing external challenges over the past five years, the company has not only defended itself but has also experienced substantial growth, witnessing a surge in market capitalization from under $100 million in March 2018 to an impressive billion dollars.
Last month, the Delhi high court had ordered the removal of the “fraud” tag from Religare Finvest Limited (RFL), after the lead bank in a consortium had put the RFL’s account on the Reserve Bank of India’s (RBI) Central Fraud Registry.
The order dated December 18 came after RFL filed a writ petition before the court with respect to the declaration of its account as “fraud” exposure by the lead bank, Religare Enterprises said in a regulatory filing. In March, RFL completed a one-time settlement (OTS) with 17 lenders through organic collections. The company paid more than Rs 9,000 crore to the country’s banking system, it said.
Commenting on the removal of the “fraud” tag, Rashmi Saluja said, “The decision by the court is evidence of our resolve towards a full-scale revival of the business and establishing Religare Group as a diversified financial services conglomerate. Through our efforts, we have made Religare Finvest Limited business-ready.”
In the face of challenges, particularly regulatory inquiries stemming from the past wrongdoings of erstwhile promoters, the company has diligently worked to address these issues. In June 2021, the company officially became a promoter-less entity governed by an Independent Board. Dr. Saluja affirmed, “We have successfully addressed and resolved all legacy issues with SEBI, ensuring compliance with regulatory requirements.”
As of March 31, 2023, Religare has demonstrated substantial year-on-year growth across its business units. The NBFC business’s net worth stood at $81.8 million with a robust CRAR of 48.94%, while Care Health Insurance achieved a Gross Written Premium of Rs. 3,947 crore, showcasing a remarkable 53% growth. Religare Broking has also achieved milestones, doubling new client acquisition and experiencing significant franchisee and turnover growth.
