Blackstone's India mortgage lender may get out of small-builder business

The RBI seized control of Dewan Housing on Wednesday, stepping up efforts to contain the economic fallout from the nation's shadow banking crisis

Blackstone Group Inc’s Indian mortgage lender plans to exit its small builder financing business at a time when pain from the nation’s credit crunch abounds, with another victim claimed this week.

“We are in the process of phasing out this small builder loan portfolio to keep the company 100% retail focused as per mandate from new owners,” said Deo Shankar Tripathi, 66, chief executive officer of Aadhar Housing Finance Ltd, in an interview.

The Reserve Bank of India this week seized major non-bank lender Dewan Housing Finance Corp, which held a controlling share in Aadhar until selling it to Blackstone in June.