Mumbai: Shares of Dewan Housing Finance Ltd (DHFL) on Monday slumped over 32% to hit a six-year low after the company reported a loss for the March quarter and warned that its financial situation was so grim that it may not survive.

At 11.45 am, the stock has fallen over 32% to 34 -- a level last seen on 6 May 2009, on the BSE. The lender has lost nearly 75% of its market value so far this year against the 7.5% gain in benchmark Sensex index during the period.

The company on Saturday reported a loss of 2,223 crore for March quarter, its first loss since June 2008, versus net income of 134 crore a year ago. Gross non performing asset (NPA) advanced 2.74% in a quarter against 0.96% last year same quarter.

The company said it is in an advanced stage of submitting its resolution process under the inter-creditor agreement as entered into by banks. The inter-creditor agreement will examine and firm up the terms of the resolution process by 25 July and make it operational before 25 September, the lender informed the exchanges

"The process of identifying a strategic investor is also nearing completion which will bring in an equity investor into DHFL to bolster its capital base. The board will be reconvening in the next two weeks to look through the potential proposals and will decide accordingly on the way forward", the company said.

"The joint lender forum has also taken into account the need for recommencement of business by DHFL and commence originating new home loans. Banks would enable the infusion of necessary liquidity into the system. It is expected that DHFL will be able to restart its business in August 2019 and scale it up in the months ahead," it added.

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