Have Rs 900-cr exposure to RBI-referred NCLT account, says HDFC

Housing Development Finance Corporation (HDFC) on Tuesday said it has exposure of Rs 909 crore in one case referred by the Reserve Bank of India (RBI) for insolvency resolution. The housing finance major did not name the account.

In a filing with the BSE, HDFC said the account to which it has the exposure was not a non-performing asset (NPA) as of March 31, 2017. Yet, as a prudent step it had made adequate provision against this exposure. At this stage, it does not have to make additional provision on this exposure for the quarter ended June 2017 (Q1FY18), HDFC said.

In June 2017, RBI’s internal advisory committee had identified 12 dud corporate loans for insolvency resolution. These are being referred by banks to the National Company Law Tribunal (NCLT) under the Bankruptcy and Insolvency Code 2016. The total exposure of lenders to these 12 accounts are more than Rs 2 lakh crore.