The consolidated net profit of L&T Finance Holdings rose 41% year-on-year (y-o-y) in the October-December quarter owing to a growth in retail loans. The company posted a bottom line of Rs 640 crore for the quarter under review. It had posted a net profit of Rs 595 crore in the July-September period.
In line with the company’s retail focus, the retail book grew 31% y-o-y to Rs 74,759 crore as on December 31. Retail disbursements rose 25% y-o-y to Rs 14,531 crore in the December quarter. The retail book includes personal loans, home loans, loan against property and two-wheeler finance.
The total loan book fell 8% y-o-y to Rs 81,780 crore as on December 31 as real estate finance, infrastructure finance, and wholesale finance witnessed a de-growth. But, the loan book grew around 3% quarter-on-quarter.
Net interest income, the difference between interest earned and expended, rose 8% year-on-year to Rs 1,833 crore in the quarter under review. The net interest margin rose to 8.97% in the December quarter from 7.41% a year ago.
The retail gross stage-3 ratio fell to 3.2%, from 4.2% a year ago. The credit cost fell to 2.52% in the reporting quarter from 2.67% a year ago.