DHFL extends bid submission deadline till September 16

August 4, 2020 1:30 AM

“The bank has provided 100% in the June quarter on account of ‘fraud’ in an account, as per guidelines of Reserve Bank of India (RBI),” SBI chairman Rajnish Kumar said during earnings call.

According to sources, lead creditor State Bank of India (SBI) had declared DHFL as ‘fraud’ account’.According to sources, lead creditor State Bank of India (SBI) had declared DHFL as ‘fraud’ account’.

By Ankur Mishra

The committee of creditors (CoC) of mortgage financier Dewan Housing Finance Corporation (DHFL) has agreed to extend the deadline for submission of bids till September 16, sources close to development told FE. In a meeting held on July 29, the CoC has also allowed digital submission of resolution plan for bidders.

FE had earlier reported that lenders may extend the deadline for submission of bids as suitors have asked for more time due to ongoing restrictions amid Covid-19. This will be third extension of deadline for submission of bids, from the original date of April 16, 2020.

According to sources, lead creditor State Bank of India (SBI) had declared DHFL as ‘fraud’ account’.

“The bank has provided 100% in the June quarter on account of ‘fraud’ in an account, as per guidelines of Reserve Bank of India (RBI),” SBI chairman Rajnish Kumar said during earnings call.

The bank is, however, hopeful of substantial recovery from the account by December this year, Kumar added.

DHFL has shortlisted 22 applicants for the company. The troubled lender had given applicants the option to bid for the whole company or in parts. Of the total applicants, 14 had submitted expressions of interest (EoIs) for the entire business of DHFL. KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital and Bain Capital were among those which placed EoIs to take over the entire business. DHFL is undergoing insolvency proceedings at National Company Law Tribunal (NCLT), Mumbai since December 3, 2019.

The mortgage lender claims to have witnessed some green shoots amid Covid-19 pandemic. In the meeting held on July 29, DHFL administrator R Subramaniakumar informed lenders that retail collections of the company has increased 26% in May 2020 over April. With the phased unlock announcement in June 2020, the retail collections further increased by about 83% in June 2020, Subramaniakumar told lenders .

Similarly, the number of borrowers availing moratorium has come down to 27% in June, from 36% in May 2020. However, the net loss of DHFL widened in the March quarter to Rs 7,635 crore, against Rs 2,223-crore loss in the year-ago quarter. The net interest income (NII) increased 245% year-on-year (y-o-y) in the March quarter to Rs 2,240 crore.

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