MUMBAI: Barody Bank (BoB) has entered into an agreement with Dewan Housing Finance Corp. Ltd (DHFL) for the purchase of loans ₹3,000 rubles against the impact of a non-bank lender, even as a creditors consortium for a non-bank lender who has highlighted the situation, is considering a settlement plan.
BoB acquired a pool of loans provided by DHFL, and adjusted it against its loans to a non-bank lender, say people, demanding anonymity. Since purchased loans are high-ranking assets, the quality of the Bank's credit book will improve.
"Now DHFL will act only as an agent for raising funds for banks for these loans. The bank will save 85-90% of the payments, and the rest will go to DHFL ", – said one of them.
Since BoB had an impact close to ₹6500 crore to DHFL, this will be comparatively slightly less ₹3000 rupees, said the second person.
"Often there is a securitization of assets, but what is different in this case is that the borrower, instead of using money for liquidity needs, uses it to cancel future loan repayment terms," said a bank analyst. on anonymity terms.
The purchase of credit reserves by banks promotes the introduction of liquidity in non-bank lenders. Banks often buy loans from shadow lenders, which include securitized retail loans to meet the lending deficit of the priority sector.
The State Bank of India (SBI), the country's largest creditor, has an impact on it ₹Rs. 10,000 DHFL, chairman of the bank, Rainis Kumar, told shareholders at their annual general meeting in June.
Other DHFL lenders include Bank of India, Central Bank of India, Andhra Bank, Canara Bank, Punjab National Bank and Corporate Bank.
As of December, a non-bank lender had an outstanding debt ₹1 trillion. Of which 38% – in the form of bank loans, 47% – from debt markets and 10% – through deposits.
Letters sent by DHFL and BoB who were looking for comments were left unanswered by the press time.
"This deal was not made as a consortium, but it was only between Bank Baroda and DHFL," said the second person.
Information agency BTI it was announced on Friday that lenders would call for their influence on the NBFC stressed sector in light of the Circular of the Reserve Bank of India on June 7, which laid the guidelines for dealing with problem loans. "Solving any underlying assets, either NBFC or any other sector, will be in line with the RBI guidelines of June 7th," Kumar reports.
On June 4, DHFL postponed payment of interest on non-convertible debt obligations ₹850 rupees, after which rating agencies Crisil and Icra lowered its credit rating to default. After that, DHFL was able to pay interest during the seven-day grace period granted by the bondholders.
On June 25, DHFL reported in the regulatory submission that it had not yet returned ₹225 rupees from the total ₹Commercial paper worth 375 crore to 12 investors. Since September, DHFL is liable for obligations ₹41,000 crore, it said in the same filing.
M & # 39; s June 20 reported that DHFL was sold ₹2000 loans in a loan portfolio for offshore investors in a transaction under the leadership of the SC Lowy banking group based in Hong Kong, referring to two people who are aware of this development.
Since December, it has also been selling shares in several of its strategic assets, including affordable housing Aadhar Housing Finance Ltd, educational loan Avanse and DHFL Pramerica Asset Managers. In January, they were sold ₹1,375 crore of wholesale loans to a foreign investment fund management Oaktree Capital, which buys troubled loan portfolios at a discount.
As of March 31, DHFL promoters include Wadhawan Global Capital Ltd (37.3%), Aruna Rajeshkumar Wadhawan (0.76%), Dheeraj Rajeshkumar Wadhawan (0.57%), and Kapilkumar Wadhawan (0.57%).