L&T Finance seeks to pare bad loans worth Rs 3,000 crore

L&T Finance Limited has informed that it has started a bidding process for sale of its non-performing loans worth Rs 3,022 crore to Asset Reconstruction companies. 

These loans are divided among ten accounts, which include Nirmal Lifestyle Malls, Nirmal Lifestyle Developers, and Supertech.

Nirmal Lifestyle Developers’ Rs 790-crore debt is the largest loan available for sale. Supertech is another loan of Rs 515 crore followed by Nirmal Lifestyle Malls of Rs 251 crore.

The lender is seeking expressions of interest from select asset reconstruction companies (ARCs) under the 15:85 structure, with L&T Finance’s maximum share in security receipts (SRs) being 85%.

Bidders who are interested in participating have until Monday to express their interest.

L&T Finance is making this move as part of its efforts to reduce its wholesale finance book, which includes both infrastructure and real estate finance.

L&T Finance had a specific structure in mind for real estate, involving a private equity partner, but that arrangement did not receive regulatory approval, management informed investors on a recent call.

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