The consolidated net profit of L&T Finance Holdings jumped 103% year-on-year (y-o-y) in April-June due to a growth in its retail loan book. The non-bank lender posted a bottom line of Rs 531 crore, up 6% on a sequential basis.
The company’s retail loan book rose 34% to Rs 64,274 crore as on June 30, as the non-bank lender is gradually looking to reduce its exposure to wholesale loans. The wholesale book fell 65% YoY to Rs 14,292 crore.
Retail loans comprised 82% of the lender’s overall loan book as on June 30.
According to the lender’s ‘Lakshya 2026’ goals, it intends to maintain the retail book at over 80% of overall loans. It aims at growing its retail loan book at a compound annual growth rate of over 25%.
The growth in the loan book was driven by consumer loans, which rose 98% YoY to Rs 5,995 crore as on June 30. Home loans rose 35% Rs 11,274 crore.
L&T Finance’s total disbursements rose 18% to Rs 12,365 crore for the quarter under review. Retail disbursements saw a rise of 25% to Rs 11,193 crore.
“We have been able to achieve most of our Lakshya 2026 goals almost three years in advance. This achievement is attributed to the twin strategy of strongly growing the retail asset book and ensuring a sharp reduction in the wholesale book,” managing director and CEO Dinanath Dubhashi said. “Going forward, we will sustain our growth momentum and continue to work towards creating a customer-focused and sustainable fintech@scale.”
The overall net interest margin rose to 8.06% in the June quarter from 6.54% a year ago. Net interest margin was 7.63% in the March quarter.
The lender’s retail gross stage-3 asset ratio fell to 3.21% as on June 30, from 3.61% a year ago. The capital adequacy ratio stood at 25.75%.