Canara Bank has invited bids to sell its ₹577 crore exposure to Supreme Housing & Hospitality / Supreme Housing and Construction, a Mumbai-based real estate developer, according to The Economic Times. The sale will proceed via Swiss challenge, a competitive bidding process that allows the incumbent creditor to match external offers.
The move underscores rising stress in real estate developer lending. Large exposures to construction-linked borrowers remain sensitive assets on bank balance sheets, particularly when developer cash flows weaken.
An important clarification: Supreme Housing & Hospitality (the real estate builder) is a separate entity from Supreme Housing Finance or Supreme Home Loans, the housing finance company. Earlier reporting conflated the two, causing confusion in the market.
The Swiss challenge process gives Canara Bank flexibility to either recover capital by accepting an external bid or retain the exposure if the original borrower or Canara itself matches the best offer received.
