At 09:50 am, the stock was trading nearly a per cent lower at Rs 121 apiece on the BSE while shares of DHFL were ruling at Rs 71, down one per cent. On the other hand, the benchmark S&P BSE Sensex was trading 245 points or 0.62 per cent higher at 39,639 levels.

"BoB acquired the pool of loans made by DHFL and adjusted it against its loans to the non-bank lender.

Since the acquired loans are higher-rated assets, the quality of BoB’s loanbook will improve," Mint reported on Monday citing sources.

Since BoB had an exposure of close to Rs 6,500 crore to DHFL, this will be pared by a little less than Rs 3,000 crore, the report added.

News agency PTI had reported on Friday, quoting SBI Chairman Rajnish Kumar, that lenders will take a call on their exposure to the stressed NBFC sector in light of the Reserve Bank's June 7 circular which has laid guidelines for resolution of bad loans. DHFL had an outstanding debt of around Rs 1 trillion at the end of December. Of that, 38 per cent are bank loans, with SBI having the highest exposure.

Moreover, the lenders of the troubled NBFC DHFL are scheduled to meet on Monday, seeking a solution for the Rs 90,000 crore debt that is owed to them, Business Standard reported. The consortium of 30 lenders led by state-run Union Bank of India, which includes banks and other financial institutions, may also consider conversion of debt into equity that can make them the largest shareholder in the mortgage lender, sources said over the weekend.

"Out of the aggregate amount of Rs 375 crore, Rs 150 crore i.e. 40 per cent has been paid on a proportionate basis and the balance amount of Rs 225 crore shall be paid in the next couple of days," it had said.