HDIL plunges 4.91 per cent after PMC Bank crisis

HDIL plunges 4.91 per cent after PMC Bank crisis

Agency News

The shares of Housing Development and Infrastructure (HDIL) have plunged almost 5% on Monday to Rs.3.87.

The immediate setback was following the suspended managing director of the crisis-hit Punjab and Maharashtra Cooperative Bank (PMC) Joy Thomas reportedly admitted to the Reserve Bank of India (RBI) that the bank's actual exposure to the bankrupt HDIL is over ₹6,500 crore -- four times the regulatory cap or a whopping 73% of its entire assets of ₹8,880 crore.

At 10:10 am on Monday, the company's shares were trading at ₹3.87 down 4.91% on BSE. The stock had touched lower circuit today. On NSE too, the stock had hit its lower circuit of ₹4, tumbling 4.76%.

HDIL stock had touched its 52-week high of ₹29.65 on 8 January 2019.

The admission of the managing director came in after a board member leaked the actual balance sheet details to the RBI, a source in know of the details said. The slum redevelopment focused HDIL is in the bankruptcy court now after being hit by a severe cash crunch following the failure of some of its key projects in the city.

On Monday, the RBI has taken over the reins of the Punjab and Maharashtra Co-operative Bank Ltd. The RBI, last week, had curbed deposit withdrawals from Punjab & Maharashtra Co-operative Bank Ltd (PMC) for six months. They cited major financial irregularities, failure of internal controls, and wrong and under-reporting of exposures.