None of our lenders is defaulting, says Piramal
Piramal Enterprises (PEL) issued a strong denial of speculation on loan defaults by realty developers to itself and to subsidiary Piramal Capital and Housing Finance (PCHFL). On Friday, these rumours had pushed the PEL stock down 10 per cent on the National Stock Exchange, to ~1,890, and by 9.7 percent to ~1,894.7 on the BSE.
The rumours were on alleged defaults by Lodha, Omkar, Vatika, Embassy, Radius, Nahar, Aristo and Supertech, among other property developers. The speculation was perhaps linked to the National Housing Board (NHB) starting its annual inspection of PCHFL. PEL noted the NHM exercise was an annual affair for all housing finance companies. PCHFL got its licence in end-August 2017 and, accordingly, NHB had begun its annual inspection now, it said .“This is purelyroutine and procedural in nature .”
The firm said: “(We) categorically state that we have a robust loan processing and recovery process, including risk management and asset monitoring systems. Developers like Lodha, Omkar, Vatika and Embassy referred to in the rum ours are part of our lending portfolio but have never defaulted on any interest or repayment obligation to PEL or PCHFL.” PCHFL, a subsidiary of PEL, provides financing solutions in the segment, such as early-stage PE, structured debt, senior secured debt, construction finance, flex ilea se rental discounting and housing finance.
Also, went the statement, contrary to the rumours, PCHFL had not extended any loan to Aristo, Nahar, Supertech, Radius and Amrapali. “Therefore, there is no question of any default on loan repayments by these developers.”
P EL has scheduled a call-conference after its board meeting this Thursday for adoption of its quarterly financial results.