Govt to Lok Sabha: DHFL total loan portfolio stands at Rs 95,615
Moneylife Digital Team 25 November 2019
Today the Lok Sabha was informed that the Ministry of Corporate Affairs has finished conducting an inspection of DHFL and has submitted the inspection report to the Finance Ministry. As per the submitted report, DHFL has a total loan portfolio of Rs 95,615 crore.
In a statement, the Finance Ministry said that the Regional Director (Western Region) has conducted an inspection of DHFL and submitted the inspection report to the Ministry on 24.10.2019. As per the inspection report, the company has taken several loans as on 31.03.2019.
The embattled housing finance company has a total loan portfolio of Rs 95,615 crore which includes housing loans of Rs 44,851 crore, non-housing at Rs 13,590 crore, SME loans Rs 4,924 crore under the retail loans. Under the wholesale loans, housing of residential projects at Rs 15,655 crore, SRA project, 7,021 crore, non-housing at Rs 9,340 crore and commercial at Rs 233 crore.
The Finance Ministry had ordered an investigation of DHFL and 5 other companies namely Immediate Real Estate Pvt. Limited, Tenacity Real Estate Pvt. Limited, RKW Developers Pvt. Limited, Darshan Developers Pvt. Limited and RajenSkycrapersPvt Limited to be led by SFIO (Serious Fraud Investigation Office) through an order on November 6, 2019. 
However, the inspection report submitted by the Regional Director (Western Region) has not delved into the involvement of banks and officials.
Last week, the RBI (Reserve Bank of India) had superseded the board and there were reports that they want to refer DHFL to National Company Law Tribunal under the Insolvency and Bankruptcy Code. An administrator has been appointed to take stock of assets and liabilities. A resolution plan will be accepted only if 66% of the CoC (Committee of Creditors) approve it. There has been a freeze on payment to creditors already.
DHFL has been facing a liquidity crisis since September 2018 and has so far paid Rs 41,000 crore of its financial obligations through a securitisation of assets and repayment collections.
DHFL had stopped paying all creditors after the Bombay High Court order on 10th October put a stay on payments. The company had earlier stopped accepting public deposits and renewals of existing deposits and pre-mature withdrawals of existing deposits on 21st May. 
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. 
DHFL had earlier said it was working on a debt resolution plan with lenders to protect the interests of its stakeholders. 
In August, the DHFL board approved a proposal to convert its debt into equity, which would have given banks control of the mortgage lender that has been struggling to meet its payment obligations.
The beleaguered pureplay mortgage lender had sought Rs 15,000 crore fund support from creditors to start giving loans to viable projects while their lenders finalise the resolution plan. The plan could also include picking up 51 percent equity in the company by converting their debt into equity.
As per other media reports, nearly nine-tenths of DHFL’s borrowing of approximately Rs 84,000 crore is secured against assets. But secured bondholders, including mutual funds, are uncertain if the embattled mortgage lender has double-dipped into what was pledged to them as security. 
In October 2019, the Registrar of Companies' (RoC) regional office in Mumbai had recommended action by the Serious Fraud Investigation Office (SFIO) against DHFL in its report to the ministry of corporate affairs (MCA). 
It is now likely that mutual fund houses will look to put pressure on promoters of DHFL following a forensic audit of the housing financier's books. They will also look to raise the issue in the three-member advisory committee formed by the Reserve Bank of India (RBI) to help the administrator. NS Venkatesh, chief executive of the Association of Mutual Funds in India (AMFI) is a member of the committee.
Banks have an exposure of Rs 38000 crore in DHFL. It is being reported that audit firm KPMG’s final forensic report is expected any time and banks will make 100 percent provisioning for DHFL--if the account is termed as a “fraud” account by the RBI.
Sources in the banking industry are reporting that lenders to DHFL are looking to make NPA provisions worth Rs 6,300 crore for their exposure in the Mumbai headquartered crippled home financier in this current quarter. State Bank of India and Union Bank of India had made provisions for their DHFL accounts in the second quarter.
4 years ago
So when will the FD holders get their money back? The media seems to have gone silent on this issue too. There are thousands of FD holders who are waiting for the Principal amount being refunded to them by DHFL.
Hudaf Shaikh
5 years ago
Excellent work done by MCA - DHFL clearly has the where-withal to pay all its creditors - be it secured creditors like banks and debentures and even unsecured FD holders.

The RBI administrator can immediately restart paying the interest to all creditors based on this MCA report - further, he should work with the advisors to draft the repayment schedule for all creditors.
Nakul Kumar Reddy
5 years ago
I will not demand anything, please go ahead with your plan.
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