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DHFL crisis: Banks stare at huge provision burden if fraud is established

KPMG did a forensic audit on DHFL. Its draft report has startling findings and says DHFL could have diverted funds to promoter-led entities

Banks

Banks which have loaned to beleaguered mortgage lender DHFL might have to provide for the exposure within weeks, if the account is treated as a fraudulent one after accountancy entity KPMG’s finding. KPMG did a forensic audit on DHFL. Its draft report has startling findings and says DHFL could have diverted funds to promoter-led entities. Banks have combined exposure of Rs 38,342 crore to DHFL, in the form of term loans, non-convertible debentures and commercial paper, according to the draft debt resolution plan.  A senior executive with a South-based public ...