India: RBI’s takeover of DHFL took its lenders by surprise

India: RBI’s takeover of DHFL took its lenders by surprise

The Reserve Bank of India sprang a surprise on lenders to Dewan Housing Finance Corp. Ltd (DHFL) by superseding its board on Wednesday, four bankers aware of the matter said, even as these bankers were meeting to craft a rescue plan for the troubled lender.

The central bank also named an administrator to run the shadow lender under its newly acquired powers, worried that a delay might lead to further deterioration of DHFL’s assets and hurt a planned bankruptcy resolution, the people cited above said on condition of anonymity.

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