DHFL stock falls 17.5% after it stops premature withdrawal of deposits

The plan should be now to sell down assets as much as possible and generate liquidity for the short-term

Shares of DHFL fell 17.5 per cent in intra-day trade on Wednesday after the housing finance company (HFC) said it will not allow premature withdrawal of deposits. However, the stock recovered to close at Rs 117.65 a piece, down 9.43 per cent from its previous close after analysts said such a move may not be bad to preserve the firm’s liquidity profile. In a letter to its distributors, DHFL had said it was solvent and had honoured Rs 30,000 crore of liabilities in the past and had no intention of defaulting.

According to an analyst tracking DHFL, the move by the