Shares of Dewan Housing Finance Corporation (DHFL) plunged nearly 18 percent on Wednesday after the company said it has stopped taking fresh deposits and placed renewals on-hold. DHFL shares dived as much as 17.8 percent to Rs 106.85 per share intraday on the NSE. At 09:20 AM, DHFL's stock price was trading 14.08 percent lower at Rs 111.70 per share, while the Nifty50 was up 0.21 percent at 11,733.95.

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DHFL shares fell around 82 percent so far in 2019 and were down 56 percent in last one year.

DHFL on Tuesday said it has also stopped premature withdrawal of deposits to help themselves in liability management. On May 15, CARE Ratings downgraded DHFL to BBB- (triple B minus), and on May 18, the company’s credit rating was again downgraded by the Brickwork Ratings.

National Housing Bank (NHB) guidelines do say that if ‘you are rated below 'A' as a housing finance company (HFC), you cannot accept deposit’. Therefore, this deposit acceptance has been put on hold.

The company will honour the existing deposits on its date of maturities, CNBC-TV18 reported, citing sources. Otherwise, they will honour payments in case of family emergency or healthcare emergency, etc.

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First Published:May 22, 2019 9:40 AM IST