DHFL tanks 18% as company stops fresh deposits, premature withdrawals

Last week, ratings agencies including Brickwork, CARE Ratings, Icra and Crisil downgraded the company's credit ranking and put them on a credit watch with 'negative implications'.

Dewan Housing Finance Corporation (DHFL) plunged as much as 18 per cent to Rs 107 in the early trade on Wednesday on the BSE after the non-banking finance company (NBFC) stopped accepting fresh public deposits and renewals of existing deposits.

The company has also halted premature withdrawals of its deposits, with immediate effect, in order to "reorganise its liability management".

Last week, most of the rating agencies including Brickwork, CARE Ratings, Icra and Crisil downgraded the company’s credit ranking and put them on credit watch with 'negative implications'.

The downgrade reflected limited progress in enhancing liquidity, selling/exiting riskier construction finance