DHFL will be in focus on Wednesday after the company stopped taking fresh deposits while renewals have been placed on hold.
The company has also stopped premature withdrawal of deposits to help themselves in liability management. National Housing Bank (NHB) guidelines do say that if ‘you are rated below 'A' as a housing finance company (HFC), you cannot accept deposit’ and recently CARE downgraded DHFL to BBB- (triple B minus). Therefore, this deposit acceptance has been put on hold.
According to CARE Ratings, CARE A signifies ‘low’ credit risk, while CARE BBB signifies ‘moderate’ credit risk.
According to sources, the company will honour the existing deposits on its date of maturities. Otherwise, also, they will honour payments in case of family emergency or healthcare emergency, etc. There is nothing to worry, this is just in line with NHB guidelines and they have been honouring all the payments that have come up for dues till now.