L&T Finance Holdings Limited (NSEI:L&TFH) has initiated a bidding process to sell non-performing loans worth INR 30,220 million to asset reconstruction companies. These loans are spread across 10 accounts, including Nirmal Lifestyle Developers, Nirmal Lifestyle Malls, and Supertech. The largest loan up for sale is Nirmal Lifestyle Developers' INR 7,900 million debt, followed by Supertech at INR 5,150 million and Nirmal Lifestyle Malls at INR 2,510 million, two sources in the know of the development said.

An L&T Finance spokesperson did not immediately respond to a request for comment. Under the 15:85 structure, the lender is inviting expressions of interest from select asset reconstruction companies (ARCs), where L&T Finance's maximum share in security receipts (SRs) will be 85%. Interested bidders have until June 12, 2023 to show their interest.

This move by L&T Finance is part of its efforts to pare its wholesale finance book, which includes both infrastructure finance and real estate finance."We are rapidly selling wholesale," said Dinanath Dubhashi, Chief Executive Officer of L&T Finance. " We don't know which asset we will sell, whether it will be a Stage-1 or Stage-2, as we hardly have any Stage-3 assets in wholesale." The company has encountered challenges in both portfolios. For real estate, L&T Finance had a specific structure in mind involving a private equity partner, but that arrangement did not receive regulatory approval, the management informed investors during a recent call.