US-based asset management firm Oaktree Capital has offered to buy offered to buy Dewan Housing Finance Corporation Limited’s (DHFL) entire book for a total of Rs 28,000 crore, CNBC-TV18 reported on October 19.
"Banks are keen to sell the entire book, instead of selling it in parts. Oaktree is the only bidder for that category and banks will seriously consider the proposal," CNBC-TV18 quoted senior banking executive with a large public sector bank as saying.
Oaktree Capital along with Adani Properties, Hong Kong-based SC Lowy and Piramal Enterprises has submitted a bid for DHFL as the deadline expired on October 17.
Oaktree Capital is said to have offered the highest recovery for lenders by far and maybe a natural choice. However, banks are mulling to negotiate the offer higher and would hold discussions with the bidders over this week.
The core committee of lenders is likely to meet on October 20 to hold discussions on bids, while the Committee of Creditors is scheduled to hold a meeting on October 26.
Apart from Oaktree, sources claimed Adani Group had bid for DHFL's Rs 40,000-crore wholesale and Slum Rehabilitation Authority (SRA) portfolio, valuing it at Rs 3,000 crore. While Piramal Enterprises has quoted Rs 12,000 crore for DHFL's retail portfolio and seeking 18 percent yield.
Bankers say SC Lowy's bid comes with so many conditions that it is unlikely to be considered.
Till March 2020, DHFL had reported total assets amounting to Rs 79,800 crore. Out of these Rs 50,227 crore of assets form 63 percent of the total portfolio and were reported as non-performing assets (Gross NPAs).
Earlier in July 2019, DHFL owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders. Among the large lenders of DHFL include State Bank of India (including SBI Singapore) with Rs 10,083 crore exposure, Bank of India Rs 4,125 crore, Canara Bank Rs 2681 crore, NHB Rs 2,434 crore, Union Bank of India Rs 2,378 crore, Syndicate Bank Rs 2,229 crore and Bank of Baroda Rs 2,075 crore, Indian Bank Rs 1552 crore, Central Bank Rs 1389 crore, IDBI Bank Rs 999 crore, HDFC Bank Rs 361 crore. Also, LIC and EPFO will have to write-off nearly Rs 10,000 crore.
DHFL is the first financial services company which has been sent to the NCLT under the insolvency and bankruptcy code (IBC). As per last month's filing, fraudulent transactions worth Rs 17,394 crore were reported at DHFL during FY07 to FY19, reported transaction auditor Grant Thornton.
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