INSUBCONTINENT EXCLUSIVE:
writeoffs if Dewan Housing Finance Corp
is declared a fraudulent account.
Only about 55 billion rupees of provisions would be required if the KPMG report absolves Dewan of
irregular lending, Budhbhatti said.
Dewan has been struggling to repay its loans as the spreading shadow banking crisis has shut off new
discuss a debt resolution plan, which will have to be reviewed by a resolution professional once Dewan is admitted to the bankruptcy court
though it added that further research was needed as to whether they constituted related parties under the Indian Companies
Act.
Representatives for Dewan and KPMG declined to comment.
One way of mitigating the fallout from Dewan, if irregularities are confirmed,
is for banks to request special dispensation from the RBI to allow them to provide only for any amounts potentially earmarked as fraud, as
opposed to the entire exposure
Banks reported 957.6 billion rupees of fraudulent accounts in the six months ended Sept