BackChallenges faced by accounts like DHFL have already been factored in: SBI
Overall quality of the NBFC asset portfolio in our books continues to be good, says the country's largest PSU bank On Thursday, DHFL scrip tumbled 14.96% to ₹94.90 — its 52-week low — on the BSE
PremiumCountry's largest public sector lender State Bank of India issued a statement on Thursday saying the overall quality of the NBFC asset portfolio in its books continues to be good.
An SBI spokesperson said: “SBI has been receiving queries on the impact that recent developments in accounts like DHFL could have on the Bank and on the system.
SBI has been very closely monitoring its exposures in the NBFC sector for the past 10 months and taking action as deemed appropriate."
The SBI statement comes at a time when shares of Dewan Housing Finance Corporation plunged over 18% Thursday as domestic rating agencies Icra and Crisil downgraded rating on ₹850 crore worth of commercial paper of DHFL.
"The overall quality of the NBFC asset portfolio in our books continues to be good. Challenges faced by accounts like DHFL have already been factored in when we have given our estimate for the stress that the Bank would have to deal with in FY 19-20 and included in our estimates for slippage and loan loss provisioning for the current financial year," the spokesperson added.
The DHFL scrip tumbled 14.96% to ₹94.90 — its 52-week low — on the BSE.
At NSE, shares cracked 18.29% to hit its one year low of ₹91.30.
On Wednesday, Crisil downgraded the commercial paper (CP) of Dewan Housing (DHFL) to D from A4+, while Icra cut its rating on the company’s paper to D from A4.
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