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Struggling mortgage lender DHFL posts Rs 2,123 crore net loss in Q2

DHFl had posted a profit of Rs 70 crore in the first quarter.

November 26, 2020 / 10:09 AM IST
 
 
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Troubled mortgage lender, Dewan Housing Finance Ltd (DHFL) has posted a net loss of Rs 2,122.65 crore in the quarter ended September, 2020 as compared with a net loss of Rs 6,640.62 crore in the corresponding quarter in the previous year.

It had posted a profit of Rs 70 crore in the first quarter.

Total assets of the company stands at Rs 83,638 crore as at end September compared with Rs 85,926.95 crore in the March quarter while total liabilities stood at Rs 91,250.13 crore in September quarter as against Rs 91,326.19 crore in the preceding quarter, the company informed exchanges on Thursday.

In the results note, auditors said the company’s ability to continue as a going concern depends upon the outcome of the ongoing corporate insolvency resolution process.

“…we are unable to comment on whether the company will be able to continue as going concern,” said auditors.

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For the quarter ended September, DHFL has posted a total income of Rs 2,205.90 crore as compared with Rs 2,114.17 crore in the year-ago period.

Total revenue from operations rose to Rs 2,204.81 crore from Rs 2,106.74 crore, the company said.

STATUS QUO

On the other hand, there is no clarity on the bidding process for the troubled lender which was caught in a series of alleged financial irregularities.

Lenders to DHFL are likely to call for another round of bids seeking higher value for its assets.

The bidders to DHFL include Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy had submitted 10-70 percent higher price for either a stake in the company or buying out some of its assets. Oaktree Capital has raised its bid price for the entire portfolio to Rs 33,000 crore from Rs 27,800 crore earlier.

According to reports, some of the lenders may now likely bid for the entire book of DHFL.

On November 11, Kapil Wadhawan, DHFL’s promoter, repeated his offer to pay up the entire principal amount to all creditors without any haircut besides letting all creditors convert part of their debt to equity.

“Even today, I am willing to stand by the principle of 100 percent repayment of principal amounts to all the creditors without any hair cut as I do believe, from DHFL’s business, that such recovery is possible,” Wadhawan said in a letter to DHFL’s RBI-appointed administrator.

DHFL is facing claims of Rs 87,031 crore from financial creditors.

Its large lenders include State Bank of India (including SBI Singapore) with Rs 10,083 crore exposure, Bank of India Rs 4,125 crore, Canara Bank Rs 2,681 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 1,552 crore, Central Bank Rs 1,389 crore, IDBI Bank Rs 999 crore, and HDFC Bank Rs 361 crore.

(This is a developing story. Please check back for details)
Moneycontrol News
first published: Nov 26, 2020 10:00 am

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