DHFL Q4 loss widens to ₹7,635 crore on fair value changes in loan portfolio

Our Bureau Mumbai | Updated on June 21, 2020

The net loss of scam-hit Dewan Housing Finance Corporation Ltd (DHFL) widened in the fourth quarter of FY20 to ₹7,635 crore, against ₹2,223 crore in the year-ago quarter.

The net loss in the reporting quarter was mainly due to the net loss on fair value changes jumping about five-fold to ₹12,403 crore (₹2,383 crore in the year ago quarter).

As of March-end 2020, the company’s housing and other loans portfolio declined 32 per cent year-on-year to stand at ₹66,203 crore (₹97,978 crore).

As per the notes to accounts, the wholesale loan portfolio aggregating ₹49,585 crore (following classification of this portfolio as ‘held for sale’ in the year ended on March 31, 2019) has been ‘fair valued’ as of March 31, 2020, at ₹30,732 crore.

Overall, total assets (total financial assets + total non-financial assets) declined 19 per cent to ₹85,838 crore as of March-end 2020 (₹1,06,475 crore).

Total financial liabilities, including debt securities, borrowings (other than debt securities), deposits and subordinated liabilities during the period declined 7 per cent to ₹91,229 crore (₹98,200 crore).

The housing finance company, which is undergoing a corporate insolvency resolution process (CIRP), said about 35 per cent of its customers by number availed the Covid-19 related regulatory moratorium.

The notes to accounts said: “The present management, in the process of analysing and reconciling its total assets, has observed that an amount of ₹3,019 crore has not been reconciled and could not be mapped to any security against which this amount was disbursed in the past.”

The process of identifying and mapping of this amount to any scheme under which it was disbursed and further steps to be taken basis the findings, are being addressed as a part of CIRP and the same is underway. The transaction audit report may reveal further details in this regard, the company said.

In the light of the above position and in the absence of internal confirmations, the company said it has been decided, as a prudent measure, to treat the amount as loss assets as per asset classification norms and also due to non-availability of any security, the company has fully provided for this amount while preparing the financials for FY20.

Published on June 21, 2020

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