New Delhi, Jan 2 (IANS): Ringing in the New Year on a sour note, real estate companies are defaulting as Peninsula Land, a unit of Ashok Piramal Group, defaulted in the payment of Rs 2.35 crore on a secured term loan worth Rs 177.72 crore from the State Bank of India.

The worrisome part is that the default is of a sum a little more than Rs 2 crore.

The company said in a regulatory filing that it had defaulted on the principal amount of Rs 88 lakh and interest of Rs 1.47 crore on November 30, 2019.

Peninsula Land has taken loans worth Rs 177.72 crore from the SBI for a tenure of 11 years and 9 months at an interest rate of 9.95 percent a year, the company said.

The company, which claims that it has delivered more than 6.4 million sq feet of real estate and has around 18.6 million under development in Mumbai, Bengaluru, Pune, Goa, Nashik, and Lonavala, has outstanding borrowings of Rs 999.74 crore from banks and financial institutions.

The total financial indebtedness of the listed entity including short-term and long-term debt as on September 30, is Rs 1,630 crore.

Peninsula Land has made an accumulated net loss of Rs 1,536.27 crore in the past 13 quarters. Analysts have been warning of default by Peninsula due to the mounting losses.

Last week, rating agency ICRA downgraded the debentures of Peninsula Land from 'BB' to 'C', citing irregularities in debt servicing and poor liquidity.

Besides the SBI, Peninsula Land has taken loans from the Allahabad Bank, HDFC Bank, Standard Chartered Bank, ICICI Bank, and Axis Bank, among others.