DHFL crisis: Banks stare at huge provision burden if fraud is established

Banks which have loaned to beleaguered mortgage lender DHFL might have to provide for the exposure within weeks, if the account is treated as a fraudulent one after accountancy entity KPMG’s finding.

KPMG did a forensic audit on DHFL. Its draft report has startling findings and says DHFL could have diverted funds to promoter-led entities.

Banks have combined exposure of Rs 38,342 crore to DHFL, in the form of term loans, non-convertible debentures and commercial paper, according to the draft debt resolution plan. 

A senior executive with a South-based public sector bank said: "While activity relating to restructuring of DHFL is still in