Archive · 8 Sep 2026
Canara Bank Labels RCom Unit Wilful Defaulter; Shares Rise
Canara Bank has said that a Reliance Communications unit did not properly repay its loan.
It classified the unit as a “wilful defaulter,” meaning the bank believes the default was deliberate under applicable rules.
The former chairman and director of Reliance Communications Limited was also given the same classification.
Despite this news, RCom’s share price rose 5% to Re 0.89.
RCom and RTL are currently going through a formal insolvency process.
Their creditors have approved plans to resolve the companies’ financial problems.
Those plans still need approval from the National Company Law Tribunal.
RCom said the loan issue began before the insolvency process and is seeking legal advice on what to do next.
Canara Bank classified a Reliance Communications unit as a “wilful defaulter,” according to RCom.
The promoter of Reliance Communications Limited was also classified as a wilful defaulter in his former role as chairman and director.
RCom shares rose 5% and reached the upper circuit at Re 0.89 apiece.
Reliance Communications and RTL are undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.
Resolution plans approved by creditors for both companies are awaiting approval from the National Company Law Tribunal’s Mumbai Bench.
- Who
- Canara Bank, Reliance Communications Limited, RTL, and the former promoter of Reliance Communications Limited.
- What
- Canara Bank classified an RCom unit and the company’s former promoter as wilful defaulters.
- When
- The report does not specify the date of Canara Bank’s letter; RCom shares rose 5% earlier in the day.
- Where
- The insolvency plans are awaiting approval from the National Company Law Tribunal’s Mumbai Bench.
- Why
- The classification concerns a loan account that RCom said relates to the period before RTL’s corporate insolvency process.
Canara Bank’s Classification
RCom’s Response
Treatment of the loan and default
Canara Bank’s Classification
Canara Bank classified the RCom unit and the former promoter as wilful defaulters under applicable Reserve Bank of India guidelines.
RCom’s Response
RCom said the loan account predates RTL’s insolvency process and must be addressed through a resolution plan or liquidation under the Insolvency and Bankruptcy Code.
Next steps
Canara Bank’s Classification
The bank’s letter communicated the wilful-defaulter classification.
RCom’s Response
RCom said its resolution professional is in control, the promoter is no longer chairman or director, and the company is seeking legal advice.
- Bank involved
- Canara Bank
- Classification
- The RCom unit and the former promoter were classified as wilful defaulters.
- Share price
- RCom shares reached Re 0.89 at the 5% circuit limit.
- Insolvency process
- RCom and RTL are undergoing corporate insolvency resolution under the Insolvency and Bankruptcy Code, 2016.
- Resolution plans
- Creditors have approved plans for RCom and RTL.
- Pending approval
- The plans are awaiting approval from the National Company Law Tribunal, Mumbai Bench.
- Company response
- RCom said it is seeking legal advice on the way forward.