Dealing with DHFL

Asset destruction should be minimised

Dewan Housing Finance Limited (DHFL) has released its unaudited and uninspected financial results for the March quarter, setting off fears for its continued survival. Its stock tanked after the markets ope­ned this week to the lowest point in years, as the results reported a loss of Rs 2,223 crore in the March quarter. Earlier in July, DHFL defaulted on its obligations to repay Rs 2,858 crore. The company also reported major possible stress in its wholesale loan book. It further said that regulators found its capital adequacy ratio below the required 12 per cent, and there were “gaps” in docume­n­tation