Money & Banking

Lenders to DHFL may be paid this week

Our Bureau Mumbai | Updated on September 21, 2021

FILE PHOTO

The SBI has signed the transaction document on September 20 while other lenders are likely to do so in the coming days, say sources

Lenders to Dewan Housing Finance Corporation Ltd (DHFL) are likely to get repaid starting this week. According to sources, State Bank of India (SBI) has signed the transaction document on September 20 while other lenders are likely to do so in coming days.

This could also give a boost to second-quarter earnings of the lenders to DHFL, who had written off the loans. The housing finance company has admitted claims of about ₹88,000 crore and banks will have a recovery of about 40 per cent of their loans.

According to the approved resolution plan, Piramal Capital and Housing Finance Ltd will pay ₹37,250 crore for the mortgage financier. Financial creditors are also likely to sign the transaction document and will be repaid soon.

However, fixed deposit holders and others small investors of DHFL are hoping for a favourable verdict from the National Company Appellate Law Tribunal (NCLAT). The NCLAT is scheduled to take up appeals on the NCLT approval to DHFL’s resolution plan on September 29.

“We will wait for the NCLAT to decide on our appeal challenging the NCLT approval. We are prepared to approach the Supreme Court also,” said Vinay Kumar Mittal, a lead petitioner in the court on behalf of FD holders of DHFL.

Published on September 21, 2021

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