DHFL ended 5.77 per cent higher at Rs 79.75 apiece on the BSE, after declining as much as 8.89 per cent to Rs 68.70 during the session, outperforming the benchmark Nifty index which finished 0.43 per cent higher. (Dewan Housing Finance share price)

The country's non-banking finance companies sector has been struggling with a liquidity crunch, after a series of defaults at Infrastructure Leasing and Financial Services (IL&FS) last year triggered fears about contagion in the financial sector.

Earlier this month, credit ratings agencies ICRA and Crisil categorised DHFL's commercial paper at default levels for missing bond payments.

That marked the fifth rating cut on the company's paper by Crisil - a unit of Standard & Poor's - this year, and fourth by ICRA, an affiliate of Moody's.

DHFL said on Tuesday that it would make the outstanding payment in the next few days "once the surplus cash flow position improves". (Also read: Dewan Housing Finance misses debt payments)

Dewan Housing Finance also said it had met over Rs. 41,000 crore worth of liability obligations since September 2018.

“Without any recourse to fresh debt funding, a situation exacerbated by multiple rating downgrades, the Company met all its financial obligations through a combination of internal accruals, sell down of its loan assets and monetisation of non-core assets,” DHFL said in its regulatory filing.

Dewan Housing Finance said it is "already in the process of selling down its loan assets including wholesale project loans to make good all its obligations and maintain its 100 per cent commitment to all its creditors as it has done since the liquidity crisis started in September 2018".

It also noted that it “does not differentiate between secured and unsecured creditors and will continue to uphold its standing as one of the leading Housing Finance Companies of the country”.