RBI refers DHFL to bankruptcy tribunal for resolution of company's Rs 83,873 cr debt

The Reserve Bank on Friday sent the crippled Dewan Housing Finance Corporation (DHFL) to the bankruptcy tribunal, making it the first NBFC/HFC to be resolved under the insolvency and bankruptcy code

FP Staff November 29, 2019 16:59:11 IST
RBI refers DHFL to bankruptcy tribunal for resolution of company's Rs 83,873 cr debt
  • The Reserve Bank on Friday sent the crippled Dewan Housing Finance Corporation (DHFL) to the bankruptcy tribunal, making it the first NBFC/HFC to be resolved under the insolvency and bankruptcy code

  • As of July 2019, the home financier owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders, including retail bondholders

  • The Reserve Bank on 20 November had superseded the board of the troubled Dewan Housing Finance Corporation (DHFL) due to governance concerns and defaults on various debt instruments

Mumbai: The Reserve Bank on Friday sent the crippled Dewan Housing Finance Corporation (DHFL) to the bankruptcy tribunal, making it the first NBFC/HFC to be resolved under the insolvency and bankruptcy code.

The central bank also said there will an interim moratorium on the lender between the date of filing of the bankruptcy application and its admission or rejection.

The city-headquartered pureplay mortgage lender becomes the first NBFC/HFC to go for bankruptcy resolution.

As of July 2019, the home financier owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders, including retail bondholders.

Of this, secured debt is Rs 74,054 crore and Rs 9,818 crore is unsecured.

The Reserve Bank on 20 November had superseded the board of the troubled Dewan Housing Finance Corporation (DHFL) due to governance concerns and defaults on various debt instruments.

The central bank had also appointed R Subramaniakumar, the ex-managing director of Indian Overseas Bank as the administrator of the third-largest pureplay mortgage lender.

(With PTI inputs)

Updated Date:

also read

Explained: Why Sri Lanka is on brink of bankruptcy and what the government is doing
World

Explained: Why Sri Lanka is on brink of bankruptcy and what the government is doing

According to the World Bank, five lakh people in Sri Lanka have fallen below the poverty line since the COVID-19 pandemic struck, food inflation has also hit a record 21.5 per cent

RBI proposes new norms for classification, valuation of banks' investment portfolio
India

RBI proposes new norms for classification, valuation of banks' investment portfolio

The new norms propose to bridge the gap between the existing guidelines and global standards and practices with regards to classification, valuation and operations of the investment portfolio of commercial banks

Antrix-Devas deal: What you need to know about the controversial case, why it is in news
India

Antrix-Devas deal: What you need to know about the controversial case, why it is in news

In February 2011, the Manmohan Singh-led government cancelled the deal for 'security reasons' after allegations of favouritism were made