L&T Finance Holdings Limited (BSE:533519) is exploring "inorganic structures" to exit the real estate projects lending business or at least reduce its exposure in the segment by partnering with other financiers, a top company official said on May 2, 2022. The company is also looking to partner with dedicated funds to create a platform which will commit funds to the infrastructure projects. This will help the company in eventually bringing down its loan book in the segment.

The L&T Group company, which had an exposure of over INR 110.00 billion to the realty sector as of March, feels the risk-return paradigm in the sector is "not favourable" despite some improvements that it has witnessed like an improvement in flat sales, its Managing Director and Chief Executive Officer Dinanath Dubhashi told reporters. He said the company is looking at "inorganic structures" to get down its portfolio, but made it clear that there is no intent of taking a haircut in the process. If a deal does not materialise, it will gradually run-down the portfolio, he added.

In a presentation shared with the bourses, the company said it will not be doing any new underwriting of loans in the segment and will explore exit through various inorganic structures. Giving a peek into what is in the works, Dubhashi said the plan may involve partnering with a financier who will give additional funding for a struck project, which would eventually help L&T Finance as the developer will be able to deliver the project, realise the sale potential and pay-off the creditor.