Ahead of IPO, Hero FinCorp writes off bad loans worth around Rs 1,200 crore

The Abhimanyu Munjal-led Hero FinCorp has written off bad loans worth close to Rs 1,200 crore, representing almost 3.4 percent of its loan book, as the lender looks to clean up its financial records in the runup to its public market debut.

Established in December 1991 as Hero Honda FinLease Ltd, the financial services arm of India's largest two-wheeler maker Hero MotoCorp today is a diversified financial services company, offering a wide range of financing solutions including two-wheeler financing, advances for buying homes inthe affordable housing segment, loans for education, and lending to the small and medium enterprise sector. The lender has a presence in over 4,000 cities and towns across India and nearly 2,000 retail financing touchpoints within Hero MotoCorp's network.
For the nine months ended December 31, 2023, the lender recorded 'impairment on financial instruments' of Rs 1,214.71 crore, coming primarily from bad loans written off, filings by the company show. This compares to impairments of Rs 1,204.79 crore recorded in the full financial year 2022-23, the filings show.