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.
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.