The shares of this Ambani back stock are in focus after India’s largest commercial bank, State Bank of India, has flagged concerns about the company’s debt profile, which is creating a buzz amongst the investors.
With a market capitalization of Rs 434 crores, the shares of Reliance Communications Ltd are currently trading at Rs 1.57 per share, down by 39.14 percent from its 52-week high of Rs 2.58 per share. Since its debut, the stock has corrected by over 99 percent, eroding shareholders’ capital.
On July 1, 2025, the State Bank of India has directed the loan account of Reliance Communications as Fraud, and also planned to report the name of Shri Anil Dhirajlal Ambani, former director of the company, to the Reserve Bank of India (RBI).
SBI said in a letter dated June 23, 2025 (received on June 30), that it has marked some loans as fraud. This decision came after reviewing show-cause notices (formal notices asking for an explanation before action is taken) and forensic audit reports (detailed investigations into financial records).
The bank discovered problems such as misuse of funds and violations of loan rules. This included money being transferred through companies like Reliance Telecom and other related firms.
The company is currently in the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016. This process started in June 2019. Since then, the company’s Board of Directors has been replaced by a Resolution Professional, Mr. Anish Niranjan Nanavaty, who was appointed by the NCLT (Mumbai Bench).
The SBI’s decision to label Reliance Communications’ loan account as fraudulent is a big warning sign. It further weakens investor confidence in a stock that has already lost over 99% of its value since its listing.
With serious claims of fund diversion and breaches of loan terms, and the company trapped in insolvency proceedings since 2019, the future looks very uncertain.
Reporting former director Anil Ambani to the RBI adds another level of regulatory attention. For investors, this situation is an important reminder to be careful with companies facing financial trouble and ongoing legal issues.
Written by Satyajeet Mukherjee
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