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Expect DHFL to become NPA for banks in Q3, says IndiaNivesh

Updated : October 10, 2019 01:42 PM IST

Ravikant Bhat, research analyst at IndiaNivesh, on Thursday, said that Dewan Housing Finance Corporation Ltd (DHFL) may be recognised as a non-performing asset (NPA) by banks in the third quarter of FY20.

"In Q4, even the country’s largest bank has said that there was no issue with this particular account (DHFL) and it was all performing and from there, within a span of six months, we have seen quite a lot change. Non-performing asset (NPA) can happen and that recognition is something which we might see — if not in Q2, maybe in Q3," said Bhat in an interview with CNBC-TV18.

Speaking about external benchmarking, he said, “That is clearly being looked upon as something which might hurt the margins of banks. Our understanding is that banks are going to have some time, it is not that just because the external benchmarking has been introduced, the entire balance sheet moves on to external benchmarking. So in that sense, it may not be as bad as is being pursued from a margin perspective.”
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