The beleaguered mortgage financier, Dewan Housing Finance Corporation (DHFL), has witnessed some green shoots amid the Covid-19 pandemic. Retail collections of the company increased 26% in May over April, DHFL said in a stock exchange filing.
With the phased unlock announcement in June, the retail collections further increased by about 83% in June, the company said. Similarly, the number of borrowers availing moratorium has come down to 27% in the same month from 36% in May.
The lender has provided the disclosure after market regulator Securities and Exchange Board of India (Sebi) asked companies to provide details about the impact of the pandemic on their businesses.
DHFL claimed to have reduced overdue retail accounts. “The company’s retail overdue portfolio has been reduced by 23% in June 2020 as compared to February 2020,” DHFL said. Similarly, retail accounts in the pre- non-performing assets (NPAs) stage has seen a reduction of 45% in June as compared to February, it added.
The company is undergoing insolvency proceedings at the National Company Law Tribunal (NCLT) in Mumbai.
The committee of creditors (CoC) had earlier decided to extend the deadline for submission of bids for the company till July 24 due to the Covid-19 disruptions. DHFL had shortlisted 22 applicants for the resolution of the troubled company.
The home loan financier had given applicants the option to bid for the whole company, or in parts. Of the total applicants, 14 had submitted expressions of interest (EoIs) for the entire business of DHFL. KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital, ARCIL Asset Reconstruction Company and Bain Capital were among the suitors who placed EoIs to take over the entire business.
The net loss of DHFL widened in the March quarter to Rs 7,635 crore against Rs 2,223 crore loss in the year-ago quarter.