Banks may take majority stake in DHFL, convert part of debt into equity

DHFL owes banks Rs 40,600 crore. It also has a liability of Rs 45,380 crore to pay the holders of debentures and bonds

The consortium of banks led by Union Bank of India, which is working on the feasibility of the resolution plan submitted by cash-strapped housing financier Dewan Housing Finance Corporation (DHFL), is toying with the idea of taking a majority stake in the firm. 

It is understood that in order to execute the resolution process, banks may convert a part of their loans into equity. 

Sources say banks are at the final stage of deliberating on DHFL’s resolution plan it submitted on August 6. 

“To facilitate a faster implementation of the resolution plan, it is important that banks take charge of DHFL by taking