DHFL cracks 18% after it prohibits new deposits, premature withdrawals

NEW DELHI: Shares of Dewan Housing Finance Corporation (DHFL) cracked nearly 18 per cent in Wednesday's trade, a day after the NBFC said it would neither accept new deposits nor allow premature withdrawals.

Premature withdrawals would be allowed only in cases of medical or financial emergency, DHFL said.

The decision comes just after rating agency CARE downgraded DHFL’s fixed deposit programme worth Rs 20,000 crore from A to BBB-.


Crisil had earlier downgraded Rs 850 crore worth of DHFL commercial papers due to delays in fund inflows from asset sales and securitisation deals. About half a dozen investors have shown interest in buying stakes in DHFL.

Meanwhile, the company was holding talks with US-based Oaktree Capital Management to raise up to Rs 18,000 crore by selling real estate builder loan portfolios, ET reported on May 17.

Shares of DHFL closed 9.43 per cent down at Rs 117.65 on BSE.