DHFL lenders to make provisions from Dec quarter as auditor checks company

Lenders to Dewan Housing Finance Corporation Ltd. (DHFL) will make provisions worth Rs 6,300 crore for their exposure to the embattled housing finance company from the December quarter, said sources in the banking industry.

Banks have an exposure of Rs 38,000 crore in DHFL, which owes Rs 84,000 crore to mutual funds, retail depositors, and others.

A source in the banking industry said audit firm KPMG’s final forensic report is expected any time, and banks will make 100 per cent provisioning for DHFL--if the account is termed as a “fraud” account by the Reserve Bank of India.

“If the account