DHFL reports net loss of ₹2,122.65 crore

Dewan Housing Finance Corporation Ltd (DHFL) has made public that it suffered from a consolidated net loss of ₹2,122.65 crore in the second quarter of the fiscal against a net loss of ₹6,640.62 crore in the same period a year ago. For the quarter concluded on September 30, 2020, DHFL reported a total income of ₹2,205.90 crore compared to ₹2,581.16 crore in the same period last fiscal. Its revenue from operations jumped up by 4.65 per cent to ₹2,204.81 crore from ₹2,106.71 crore.

Dewan Housing Finance Corporation Ltd is a deposit-taking housing finance company, based in Mumbai with branches in major cities across India. DHFL was established to offer access to economical housing finance to the lower and middle-income groups in semi-urban and rural parts of India.

“The company also reported transaction details to Stock Exchanges and NHB through communications dated September 2, 2020, September 28, 2020, and October 6, 2020, for an outstanding sum of ₹14,04,550 lakh, ₹12,70,553 lakh and ₹1,86,484 lakh, respectively. The company has made provisions as per NHB guidelines on ‘Provisioning Pertaining to Fraud Accounts’,” DHFL Administrator R Subramaniakumar said in the results.

The auditors said DHFL’s continuance as a growing concern depends upon the result of the ongoing corporate insolvency resolution process. “The group has accumulated losses exceeding the share capital and reserves and its net worth is fully eroded,” it noted. DHFL shares soared by over five per cent in intra-day trade and closed at a gain of 4.88 per cent at ₹25.8 apiece on BSE on Thursday.

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