L&T Finance Holdings on Friday reported a 39% year-on-year increase in its consolidated net profit for the three months ended December 31 to Rs 454 crore on account of a robust loan growth.
The company’s retail loan book grew 34% YoY to Rs 57,000 crore, led by rural business finance, farm equipment finance and two-wheeler loans. The retail portfolio mix was at 64%, compared to 58% in the in the previous quarter. Retail disbursements stood at Rs 11,607 crore, a rise of 53% YoY.
The company’s net interest margin stood at 8.80% as of December 31, up 70 bps YoY due to the changing portfolio mix towards retail. Its gross stage 3 stood at 4.21% as on December 31, down by 248 bps a year ago. The company shifted its focus to retail loans. The company has made a one-time provision of Rs 2,687 crore. The capital adequacy ratio stood at 23.49% as on December 31.
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“On the strategic initiatives front, we have recently concluded the sale of our mutual fund business and are progressing well on our retailisation journey consisting of two major pillars, namely strong retail growth and accelerated sell-down of wholesale portfolio,” Dinanath Dubhashi, MD & CEO, said.
