The deceleration in the non-bank lending industry continues to haunt real-estate companies. Mumbai-based Radius Developers has defaulted on scheduled interest payments on an Rs 1,200-crore loan to private lender Yes Bank. 

The company, which has delayed interest payments by 45-60 days, has exposure of about Rs 5,500 crore to the banking system. 

The Radius Developers account is currently in the SMA-2 category and it has delayed interest payments of Rs 30 crore. We have made requisite provisions on the account if they don’t pay before the 90-day period. 

The Radius Group project that Yes Bank had funded is located in Chembur, a sprawling northeast Mumbai suburb. The development has been delayed by about four years due to wanting of environmental clearances.

Read EquityPandit’s Nifty Bank Outlook for the Week

 The developer had got into an agreement with a prominent NBFC last year to sell a part of the project at a lower rate for Rs 360 crore.