HDIL shares plunge nearly 5%, hits lower circuit2 min read . Updated: 30 Sep 2019, 10:36 AM IST
- HDIL's stock had touched its 52-week high of ₹29.65 on 8 January 2019
- The real estate development company touched lower circuit on both the equity indices
New Delhi: Shares of Housing Development and Infrastructure (HDIL) slipped almost 5% after the suspended managing director of the crisis-hit Punjab and Maharashtra Cooperative Bank (PMC) Joy Thomas reportedly admitted to the Reserve Bank of India (RBI) that the bank's actual exposure to the bankrupt HDIL is over ₹6,500 crore -- four times the regulatory cap or a whopping 73% of its entire assets of ₹8,880 crore.
At 10:10 am, the company's shares were trading at ₹3.87 down 4.91% on BSE. The stock had touched lower circuit today. On NSE too, the stock had hit its lower circuit of ₹4, tumbling 4.76%.
However, the stock had touched its 52-week high of ₹29.65 on 8 January 2019.
The admission of the managing director came in after a board member leaked the actual balance sheet details to the RBI, a source in know of the details said.
The slum redevelopment focused HDIL is in the bankruptcy court now after being hit by a severe cash crunch following the failure of some of its key projects in the city.
While HDIL did not reply to a detailed e-mail sent by PTI on the issue, the bank, its chairman Waryam Singh and Joy Thomas could not be reached for comments immediately.
The source told PTI that non-disclosure of the actual HDIL status (NPA since the past two-three years) and the quantum of the exposure to the group was leaked by one of the PMC board members himself to the Reserve Bank, forcing Joy Thomas to confess the misreporting.
According to the source, Thomas wrote a four-and-a-half page detailed letter to the regulator giving details of how he, along with six key people who include a few board members, including chairman Waryam Singh and one or two senior bank officials, were sanctioning loans to the HDIL Group.
Waryam Singh was on the board of HDIL for nine years between 2006 and 2015 and had held 1.91% stake in the company during this period. He ceased to be a non-executive director of the company in March 2015. Before he exited the HDIL board, Singh had sold his entire stake in the company.
Meanwhile, Joy Thomas had said that HDIL Group has not been servicing its loans worth ₹2,500 crore from Punjab and Maharashtra Cooperative Bank (PMC) since the past two-three years. He also said that he has heard that the RBI might increase the deposit withdrawal limit to ₹1 lakh from ₹10,000 now.