SBI Rejects Reliance Communications Request, Will Include Company in Wilful Defaulters List

The State Bank of India (SBI) has rejected the representations submitted by Reliance Communications (RCom) against its proposed inclusion in the list of wilful defaulters. The bank has decided to include the name of Rcom in wilful defaulter list. The bank has decided to forward the company’s name to Credit Information Companies (CICs) for necessary action towards its inclusion in the list of wilful defaulters.

Reliance Communications disclosed the development in a regulatory filing dated November 4, 2026. According to the filing, the company received a letter from SBI dated October 31, 2026, on November 3, 2026. The letter stated that SBI’s Review Committee for Wilful Defaulters had examined the submissions made on behalf of the company but rejected its representations.

Rcom had requested SBI not to include its name in wilful defaulter list. The company is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The company’s resolution plan has been approved by the Committee of Creditors and is awaiting approval from the National Company Law Tribunal (NCLT), Mumbai Bench.

The company has stated that the credit facilities mentioned in SBI’s communication relate to the period before the commencement of the insolvency process. RCom has also referred to protections available under the IBC and said that the classification is not expected to have an impact on the company. It is examining the communication and seeking legal advice on the next course of action.

How much loan RCom has taken from SBI?

Reliance Communications borrowed money from a consortium of banks, with SBI acting as the lead bank. The loans included credit facilities dating back to 2016. According to information provided by the Government of India in Parliament in July 2025, SBI’s credit exposure included approximately ₹2,227.64 crore in outstanding principal under fund-based facilities, along with accrued interest and expenses, and ₹786.52 crore in non-fund-based bank guarantees. These figures represent SBI’s reported credit exposure, not necessarily the final amount recoverable.

On June 13, 2025, SBI classified Reliance Communications and promoter-director Anil D. Ambani as fraudulent under the applicable banking rules and its internal policy. The bank cited suspected irregularities and alleged diversion or misuse of loan funds. SBI subsequently reported the classification to the RBI. The allegations and the bank’s classification should not, by themselves, be treated as proof of criminal guilt.

RCom has been undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, since 2019. Its affairs are managed by a resolution professional, and its board’s powers have been suspended. The company’s resolution plan has been approved by its Committee of Creditors, but the company said in its November 2026 disclosure that approval from the National Company Law Tribunal (NCLT), Mumbai, was still awaited. RCom has also argued that the loans relate to the period before the insolvency process began and has sought legal advice on the consequences of SBI’s actions.

What Happens Next?

SBI’s decision means that the bank will proceed with forwarding RCom’s name to Credit Information Companies for necessary action regarding its inclusion in the wilful defaulters list. The latest development adds to the financial and legal challenges faced by the debt-laden telecom company, which remains under insolvency proceedings.

The inclusion process and the company’s legal response will be important developments to watch. RCom’s position is that the insolvency process and protections under the IBC are relevant to the action being taken by the bank.