India Housing Financiers Slide on Reports Dewan Halts Deposits

Shares of Indian non-bank lenders for housing plunged on reports that Dewan Housing Finance Corp. has stopped accepting fresh money and halted premature withdrawals from existing deposit plans, Bloomberg News reported. The company, which was already facing difficulties in the bond market following a string of recent downgrades, slumped as much as 18%, the most since Feb. 1, on Wednesday. Indiabulls Housing Finance Ltd. fell as much as 4.1% before paring losses, while PNB Housing Finance Ltd. declined as much as 2.6%. Concerns have been mounting about India’s shadow banks ever since Infrastructure Leasing & Financial Services Ltd., a vast conglomerate that’s raised billions of dollars in the corporate bond market, defaulted on its repayment obligations last year. Read more