 "Radisson Blu hotel")
HDFC is assessing a one-time settlement (OTS) offer from promoter D P Jain regarding the sale of two Radisson Blu hotels in Ghaziabad.
The lender has received an offer of Rs 315 crore from the promoter, while Prudent ARC has submitted a binding offer of Rs 311 crore, according to a report in The Economic Times (ET).
The total outstanding loan for the hotel properties amounts to Rs 507 crore. A source stated that the loan was categorised as a special mention account (SMA) 2, as of June.
On June 26, Prudent ARC's initial offer of Rs 311 crore triggered a Swiss challenge but no bidder expressed interest in the auction.
Prudent ARC's all-cash offer would result in a 61 per cent recovery for HDFC, which merged with HDFC Bank on July 1, as the lender.
HDFC has appointed Alvarez & Marsal to handle the sale of the real estate portfolio. In the previous quarter (Q4FY23), HDFC received a bid of around Rs 1,100 crore from Omkara ARC for another pool of loans, including the hotel properties. However, the sale did not take place. In FY23, Assets Care and Reconstruction Enterprise (ACRE) purchased developer loans in two tranches at 50 per cent of the loan value, resulting in significant recoveries, according to the ET report.
Over the past few quarters, asset quality at HDFC has shown improvement. The gross non-performing assets (GNPA) for individual accounts decreased from 0.99 per cent to 0.75 per cent in Q4FY23, compared to the previous year, while non-individual GNPA decreased from 4.76 per cent to 2.9 per cent.
