Dewan Housing Finance Corporation Ltd (DHFL) is popularly known as one of India’s leading housing finance companies. They are committed to creating, protecting, and maintaining our dream home, by offering attractive interest rates. DHFL is mainly focusing on providing easy and accessible housing finance to the lower- and middle-income groups in India, transforming their aspirations into reality.
The committee of creditors (CoC) of DHFL has agreed to extend their deadline regarding the submission of bids till September 16. On 29th July they held a meeting with the committee of creditors and they have also allowed the digital submission of resolution plan for bidders. Earlier reports were indicated that the lenders may extend the deadline for submission of bids as suitors have requested more time due to ongoing restrictions amid the COVID-19 pandemic.
The original date for the submission of bids was on 16th April 2020 and this will be the third extension of the deadline for submission of bids. According to the published records, the lead creditor State Bank of India (SBI) had declared DHFL as ‘fraud’ account’. During earnings call Mr. Rajnish Kumar the chairman of State Bank of India (SBI) said that the bank has provided 100 percent in the June quarter on account of ‘fraud’, as per guidelines of Reserve Bank of India (RBI) and he also added that the bank is, however, hopeful of substantial recovery from the account by December in this year.
They DHFL has shortlisted about 22 applicants for the company and the troubled lender had given applicants the option to bid for the whole company or in parts. From the total applicants, 14 had submitted their expressions of interest (EoIs) for the entire business of DHFL. It includes KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital, and Bain Capital. From 3rd December 2019 onwards DHFL is undergoing insolvency proceedings at National Company Law Tribunal (NCLT).
A meeting was held on 29th July under the supervision of DHFL administrator R Subramani Kumar noticed the lenders that retail collections of the company have increased 26percent in May 2020 over April. In June the retail collections further increased by 83 percent and also the number of borrowers availing moratorium has come down in May and June. As per the records, their net interest income (NII) has increased 245% year-on-year (y-o-y) in the March quarter to Rs 2,240 crore.
