Page 14 - Banking Finance November 2019

HOUSING

PNB Housing Finance net Manraj Housing Finance posts net loss of Rs 0.27 crore
in the Sept quarter
profit increases by 45% in
Net Loss of Manraj Housing Finance reported to Rs 0.27 crore in the quarter
Q2 ended September 2019 as against net loss of Rs 0.52 crore
An increase of 45% in net profit at during the previous quarter ended September 2018. Sales
Rs 367 crore declined 90.00% to Rs 0.01 crore in the quarter ended
for the quar- September 2019 as against Rs 0.10 crore during the pre-
ter to Sep- vious quarter ended September 2018.
tember
compared Govt likely to direct SFIO in DHFL financial irregularities
with Rs 253 crore in the comparable
A Serious Fraud Investigation Office (SFIO) investigation is likely to be ordered
period last year, month's ahead of its
by the central government into the alleged finan-
proposed Rs 2000 crore equity rais- cial irregularities at debt-ridden mortgage firm
ing plan.
Dewan Housing Finance Corporation (DHFL) af-
The company has stated its net inter- ter a report by the Registrar of Companies (RoC)
est margin for the quarter was at indicated fund diversion, as per the information
3.19% compared with 2.72% for the from the source.
year ago period.
Earlier this year, the Mumbai office of the RoC
Its net interest income increased by had initiated a detailed investigation into the al-
36% at Rs 628 crore while asset qual- leged financial irregularities, including fund diversion, by DHFL promoters. The
ity weakened a tad with gross non- source has further informed that the RoC submitted its report on DHFL to the
performing assets ratio slipping to Ministry of Corporate Affairs (MCA) a few days ago.
0.84% from 0.45% a year ago.
As per the SFIO, there is a good enough reason to consult the SFIO, the official
“Lending opportunity is limited now. said, adding that the report indicates diversion and siphoning of funds.
But despite gloomy times continuing DHFL came in the eye of storm after a report suggested that the company,
for the sector, our interest rate through layers of shell companies, allegedly siphoned off Rs 31,000 crore out of
spread remain healthy," chief execu- total bank loans of Rs 97,000 crore. Following the allegations, the Mumbai of-
tive Sanjaya Gupta said.
fice of the RoC started looking into the matter and found that certain offices
He further states, “The company has that were reported as shell companies were not found at their given addresses.
created excess provisions out of the
profits arising on account of corpo- HFCs' gross non-performing assets increased by 2.2%,
rate tax rate cut announced recently says ICRA
by the government.”
According to ICRA, the gross non-performing assets (GNPAs) of housing finance
The tax reduction has contributed 8-
companies will rise to 2.2% from 1.8% in June
9% to net profit. The company has
2018. As per experts, the asset quality of
reduced its corporate lending to 83% housing finance companies (HFCs) is likely to
amid lesser opportunity while retail deteriorate in the medium term due to pros-
loan disbursement remained more or
pects of a spate of defaults by builders and
less same.
slowdown.
Total loan disbursements for the Owing to delays and challenges faced by
quarter dropped almost by a third to some projects, markets like Surat and Pune in the affordable segment could show
Rs 12,604 crore between April and higher slippages.
September compared with Rs
18,172.2 crore in the same period The overall gross non-performing assets of HFCs increased to 1.8% as of June
last year. 30, 2019. The deterioration in the construction finance segment and a general
increase in bad loans during Q1FY20 led to rise in GNPA.

14 | 2019 | NOVEMBER | BANKING FINANCE