DHFL lenders brace for haircut after foreign bidders back out of race

Only two firms in race for retail, wholesale, and slum rehabilitation authority portfolio

With the deadline for submitting bids for Dewan Housing Finance Corporation (DHFL) ending this weekend, Indian lenders are expecting lukewarm response to the sale of the housing finance company’s assets.
 
Since there are no takers for the entire company as a single entity, and bids are expected only for a few assets, lenders are bracing for a significant haircut on their exposure to DHFL, said a source close to the development.
 
In February, banks had offered to sell DHFL assets in three parts, including the sale of the company as a single unit.
 
Indian lenders, mutual funds,