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.