IIFL Finance in talks to sell wholesale loan book

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Mumbai: Fairfax-backed IIFL Finance, a leading financial services player, is in talks with global funds including SSG Capital, Apollo Global Management and Cerberus Capital to sell its wholesale lending portfolio, multiple people aware of the development said.
The Rs 4,560-crore exposure to real estate developers constitutes nearly 13 per cent of its total portfolio of Rs 37,951 crore. Talks are at an early stage, but the IIFL group wants to cut down its corporate and real estate lending book, the sources, who are privy to the negotiations, added.
“Though IIFL has a larger exposure to the retail sector, the wholesale book, especially construction financing has become a menace, with developers struggling to meet payment schedules because of lacklustre sales. The Covid-19 pandemic has increased the vulnerability of the situation,” said one of the people.
IIFL Finance, formerly known as IIFL Holdings, had gross non-performing assets of 2.31 per cent and net NPAs of 0.97 per cent at the end of the previous financial year. Its gross NPAs were at 1.96 per cent and net NPAs stood at 0.63 per cent in financial year 2019.
As of May 25, 58 per cent of its loan book was under moratorium, the company said in a recent presentation. The home loans segment …

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