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New DelhiOne hour ago
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- RBI approved the resolution plan last week
- Insolvency process going on in NCLT’s Mumbai Bench
The Reserve Bank of India (RBI) has given a No Objection Certificate (NOC) for the sale of Dewan Housing Finance Limited (DHFL). Piramal Capital and Housing Finance has offered Rs 37,250 crore to buy DHFL during the insolvency process. Only last week, RBI approved this offer.
DHFL said in the regulatory filing that after getting the NOC from RBI, the company has applied to the National Company Law Tribunal (NCLT) to submit the resolution plan. This resolution plan has been approved by the DHFL’s Committee of Creditors (CoC).
Insolvency process going on in NCLT’s Mumbai Bench
In November 2019, the Reserve Bank of India (RBI) applied to declare DHFL insolvent under the Code of Insolvency and Bankruptcy (IBC). The insolvency process of DHFL is underway in the Mumbai Bench of the National Company Law Tribunal (NCLT). After dissolving the board of the company, R. Subramanyakumar has been appointed as Administrator. DHFL is the first finance company against which RBI has applied for insolvency process using special powers.
About 83 thousand crores debt on DHFL
As of July 2019, DHFL had debt of Rs 83,873 crore. This includes money from banks, national housing boards, mutual funds and bondholders. State Bank of India (SBI) has the highest debt on DHFL. According to the annual report, DHFL had assets worth Rs 79,800 crore as of March 2020. Out of this, non-performing assets (NPAs) of Rs 50,227 crore or 63% of the total portfolio have been declared.
Net loss of Rs 13,095 crore in the third quarter
In the quarterly results released earlier this month, DHFL reported a net loss of Rs 13,095.38 crore in the December quarter. The company had a net profit of Rs 934.31 crore in the same period a year ago. DHFL had a net loss of Rs 2,122.65 crore in the second quarter (September) quarter of the current financial year.