DSP Mutual Fund, the asset manager has recovered the entire dues of Rs 150 crore from troubled mortgage lender Dewan Housing Finance Corp. Ltd (DHFL). The third-largest pure-play mortgage lender had borrowed money from the fund house through the commercial paper route but had paid only half of its dues in June.
DHFL has been the most severely impacted large non-banking financial company (NBFC) in the liquidity crisis, which has engulfed India’s finance services sector since September 2018, when industry major Infrastructure Leasing and Financial Services (Il&FS) went belly up. It has defaulted on multiple commitments and has also been forced to sell off non-core assets as the promoters sought to repay loans.
The company owes around Rs 1 trillion to the system, including over Rs 50,000 crore to banks, while the rest are from entities like mutual funds. In a statement, DSP Mutual Fund on Monday said the remaining amount of Rs 75 crore was paid last Saturday, resulting in a “complete recovery” for the commercial papers held its various mutual fund schemes.
Over the past two months we have been engaged with the issuer for the pending recoveries,” it said.
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