DHFL rises 6% after reports suggest NHB found no major deviation in books

Shares of Dewan Housing Finance Ltd rose 6.79 percent on NSE after news reports suggested that the National Housing Bank (NHB) completed its inspection of the company’s book last week and found no major deviation.

At 09:44 AM, the shares of DHFL were up 3.56 percent, at Rs 132.45 per share.

NHB’s four-committee member has checked all the books of offices in New Delhi, Nagpur and Mumbai, news reports said.

Last week, a Mumbai-based chartered accountant firm TP Ostwal mentioned in its report that DHFL has not promoted any shell companies after news portal CobraPost alleged that it siphoned off about Rs 31,000 crore. The stock came down by about 50 percent in one month on the allegations.

But the management denied all allegations.

Also, last week, CARE Ratings had revised DHFL's long term ratings. In its press release, the rating agency said that the revision takes into account further moderation in financial flexibility due to limited progress of earlier envisaged strategic measures and inflows from securitization deals to build up additional liquidity.

Earlier to CARE Ratings, ICRA had also downgraded the rating of the housing finance company's commercial papers from 'A1+' to 'A2+'. This was done on account of the company's inability to generate fresh business due to the challenges in raising funds from the banks and debt markets.