L&T Finance Ltd (LTF) on Thursday announced that its rural business finance business has crossed Rs 25,000 crore mark in its book size. “This achievement is a testament to the Company’s commitment to empowering rural entrepreneurs and small business owners who truly form the backbone of the Indian economy. With a strong focus on financial inclusion and rural development, LTF’s Rural Business Finance has been at the forefront of providing accessible and affordable financing solutions to the rural community,” the company said in a statement.
Since its inception, L&T Finance has provided loans to over 1.4 crore rural women entrepreneurs. Furthermore, the company has been able to extend its reach to underserved areas through a network of over 1,700 branches across 14 states.
The key growth geographies for the company have been Bihar, Tamil Nadu, Karnataka, West Bengal, Uttar Pradesh, Orissa, amongst others. These markets are expected to continue as growth markets driven by consistent and strong customer interest.
Sonia Krishnankutty, Chief Executive, Rural Business Finance, LTF, said, “Reaching a book size of Rs. 25,000 Crore is a significant milestone for our Rural Business Finance vertical. Our success is built on a data-driven approach, which enables us to make informed and effective lending decisions. This approach has allowed us to maintain a high-quality portfolio while maintaining healthy growth. Over the past two years, our focus has been on both acquiring new customers and retaining existing ones.”
For the fiscal year ended March 31, 2024, LTF’s retail portfolio size reached Rs 80,037 crore, with Rural Business Finance comprising 31 per cent of the overall retail book.