Piramal Enterprises (PEL) stated that its subsidiary Piramal Capital and Housing Finance has secured approval from the Competition Commission of India (CCI) to acquire Dewan Housing Finance Corporation (DHFL). The approval brings Piramal a step closer to take charge of DHFL, as PCHFL’s 34,250 crores.

In about the next two months the company expects the concluding endorsement on DHFL resolution from the National Company Law Tribunal. PCHFL’s resolution plan for DHFL had priorly gained 94 percent votes by the committee of creditors. The bid amount will enable lenders to redeem about 40 percent of their dues, out of the total admitted claims at 87,082 crores.

Ajay Piramal, chairman of Piramal Enterprises said “Over the last two years, we have significantly strengthened our balance sheet, and continue to transform our financial services business model from largely wholesale-led to a more diversified one across wholesale and retail financing, this transformation will also be augmented by our impending inorganic initiative with DHFL that is currently undergoing the regulatory process,” he added.

The provisions were made to manage any uncertainty emerging from the second wave of Covid-19. According to the company, the capital acceptability ratio of the firm remained at 37 percent during the March quarter, which is the best in the industry.

Piramal Enterprises stated the Net sales of its financial service business reduced by14 percent year-on-year to 1,478 crores. The company continued to make conventional provisions at 6.3 percent of the loan book at 2,797 crores during FY20.

The provisions were made to manage any uncertainty emerging from the second wave of Covid-19. According to the company, the capital acceptability ratio of the firm remained at 37 percent during the March quarter, which is the best in the industry.