DHFL plans to scale down outstanding CP position to less than 1%

Dewan Housing Finance Limited (DHFL) bought-back commercial papers worth Rs 17.75 billion on Monday and has offered to buy-back all of them maturing by November 15. 

Since September 21, the company has repaid commercial paper holders Rs 94.65 billion, including a buy-back worth Rs 32.4 billion and conducted the successful securitisation assignment worth Rs 66 billion.

The firm says it has provided for all its outstanding commercial papers that are maturing by November 30.

Kapil Wadhawan, chairman and managing director of DHFL said, “Over the years, DHFL has maintained a strong asset quality and has been well-matched in case of the Asset-Liability Management position. Despite the market scenario, DHFL has been committed to honouring all the financial obligations without any delays. DHFL has taken strong steps to rebalance its loan growth profile, maintain sufficient liquidity and strengthen its core balance sheet."

Commercial papers outstanding for the housing finance company by the end of November 2018, will constitute only one per cent of the total borrowings amounting to Rs 11.25 billion.