Mumbai, Oct. 21 -- Even as mutual funds object to securitisation deals between banks and Dewan Housing Finance Corp. Ltd (DHFL), lenders to the company said they have followed norms set by the Reserve Bank of India (RBI) for such transactions.

A senior public sector banker, part of the lenders' consortium, on Monday said the deals were based on prescribed guidelines of the central bank and were done in other non-banking financial companies (NBFCs) as well. He said mutual funds have raised objections to the large buyout by Bank of Baroda worth Rs.3,000 crore, among other such deals.

Mint reported on 30 June that Bank of Baroda (BoB) has entered into a transaction with DHFL to acquire loans worth Rs.3,000 crore against its exposure to the...