Mortgage lender Dewan Housing Finance Corporation (DHFL) narrowed its net loss in the September quarter (Q2) to Rs 2,123 crore, against Rs 6,641-crore net loss in the corresponding quarter in the previous year. While the interest income in Q2 increased 3% year-on-year (y-o-y) to Rs 2,190 crore, total expenses saw a massive decline of 49% y-o-y to Rs 4,972 crore. The company said that 29% of account holders by number had availed moratorium as on August 31, 2020.
The Reserve Bank of India (RBI) had earlier granted six months moratorium to borrowers from March 1, 2020.
“The recovery from accounts in moratorium is forthcoming with gradual implementation of unlock and commencement of field visits,” DHFL said in its notes to accounts. “Monthly instalment from almost 76% moratorium customers was collected in September, 2020, being first month after moratorium, it is believed that recovery will further improve in moratorium accounts during forthcoming months of financial year 2020-21.”
DHFL’s total income increased 4.3% y-o-y, but declined 5.4% quarter-on quarter (q-o-q) to Rs 2,328 crore. Other income fell 85.3% y-o-y and 73.6% sequentially to Rs 109 crore.
Total assets of the company stood at Rs 83,638 crore at the end of the September quarter, compared to Rs 85,927 crore in the March quarter. Total liabilities stood at Rs 91,250 crore in Q2, as against Rs 91,326 crore in Q1.
DHFL also said that the company is running as a going concern as per provisions of the code, which requires that the value of the company is preserved and maintain it as a going concern. “Further various bidders have expressed interest and submitted a resolution plan for the company which itself is an indicator of company will be running as ‘going concern’ in future as well,” it further said.
Lenders had earlier shortlisted 22 applicants for the company, which were further narrowed down to four bidders. Committee of creditors (CoC) on Tuesday resolved to invite fresh round of bids, without opening bids in the third round.
Oaktree Capital, Piramal Enterprises, Adani Properties and SC Lowy had earlier submitted bids in the second round on November 9. DHFL has been undergoing insolvency proceedings at the National Company Law Tribunal in Mumbai since December 3, 2019. The admitted claims of financial creditors from DHFL stood at Rs 87,120 crore as on September 10.
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