Dewan Housing Finance Corporation (DHFL) on Monday clarified that the company had neither defaulted on any payment nor had it delayed meeting any payment obligations.
The clarifications came after the company on Friday lost more than 50 percent in trade with the stock hitting a 19-month low of Rs 274.75, as it witnessed heavy selling on concerns of liquidity default.
Kapil Wadhawan, chief managing director of the company, told CNBC-TV18 that the firm made a Rs 700 crore payment on Friday and Rs 900 crore was being paid to commercial paper holders on Monday.
Also Read: Not even a single day's delay in meeting payment obligations, says DHFL
"There was a challenge with another NBFC in the system which resulted in the mayhem on Friday," said Wadhawan.
Wadhwan said the firm's undrawn credit lines are at Rs 12000 crore and the debt to equity is at 7x "which is at comfort level as against National Housing Bank regulation of 16x".
The company expects a 5-7 percent cut in loan growth, which is estimated to be at 18-20 percent for FY19, he said.
Yes Bank’s exposure to DHFL is at Rs 3000 crore out of the Rs 51000 crore of capital market borrowing. 81 percent of loans are to retail which includes loan against property, Wadhwan further mentioned.