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Last Updated : May 22, 2019 09:46 AM IST | Source: Moneycontrol.com

DHFL plunges 17% after halting fresh deposits and renewals

The decision comes after the embattled home financer has been subjected to multiple downgrades by credit evaluators on its debt instrument in recent months

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Shares of Dewan Housing Finance Ltd (DHFL) fell up to 17 percent intraday on May 22 after the company announced that it has stopped accepting fresh public deposits and renewals of existing deposits with immediate effect.

The decision comes after the embattled home financer has been subjected to multiple downgrades by credit evaluators on its debt instrument in recent months.

The latest in the series of downgrades came from CARE Ratings, which downgraded DHFL’s fixed deposit programme worth Rs 20,000 crore from A to BBB-.

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According to the credit evaluator, CARE A signifies ‘low’ credit risk, while CARE BBB signifies ‘moderate’ credit risk.

DHFL has also stopped pre-mature withdrawals of existing deposits in order to help reorganise its liability management. However, the home financer assured that it will honour pre-mature deposit withdrawal requests in case of a medical or financial emergency, subject to fulfilment of appropriate documentation.

At 0923 hours, DHFL was quoting at Rs 112.70, down 13.24 percent on the BSE.

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First Published on May 22, 2019 09:29 am
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