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DHFL slumps after RBI starts resolution process

Capital Market 

Dewan Housing Finance (DHFL) was locked in a lower circuit of 5% at Rs 19.70 after the Reserve Bank of India (RBI) filed an application to initiate the insolvency resolution process against the company.

On Friday, 29 November 2019, RBI filed an application for initiation of corporate insolvency resolution process against DHFL under Section 227 of the Insolvency and Bankruptcy Code, 2016. DHFL will be the first NBFC to go through National Company Law Tribunal (NCLT) debt resolution.

The DHFL stock has tanked 58.61% in the past three months as it continue to default in various payment obligations.

On consolidated basis, DHFL reported a net loss of Rs 242.48 crore in Q1 June 2019 as against a net profit of Rs 431.71 in Q1 June 2018. Net sales dropped 24.1% to Rs 2399.84 crore on YoY basis.

Meanwhile, the S&P BSE Sensex closed 0.02% higher at 40,802.17.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 02 2019. 15:48 IST