DHFL dips 15 per cent on curbing deposits, withdrawals

Dewan Housing Finance Limited (DHFL) on Tuesday said that it would not accept deposits. It also mentioned that the company will not allow premature withdrawals after rating agencies downgraded its rating on debt instruments.

 

The NBFC has been in news for wrong reasons recently. The rating for the company's fixed deposit programme worth Rs. 20,000 crore was lowered from A to BBB-. The company had around Rs. 8,400 crore of loan obligations and securitisation payouts in the first quarter. On the contrary, the company's liquidity till April was pegged at Rs. 2,775 crore even as the company is seeking to sell more assets.

 

The crisis led company had offered deposit schemes for the public in the range of 12 months to 120 months with interest rates ranging from 8.2 per cent to 9.25 per cent for deposits of less than Rs. 5 crore.

 

The stock price of DHFL felt the heat in the recent past when another rating agency downgraded its Rs. 850 crore commercial papers due to delay in fund inflow from asset sales and securitisation deals.

 

On Wednesday, the stock price fell sharply by over 15 per cent intraday. At 11.10 am, the stock traded lower by almost 12 per cent at Rs. 114.65 on BSE.