L&T Finance Holdings Ltd has reported 25.3 per cent growth in net profit, at Rs 121 crore, in the June quarter on the back of robust loan growth in rural market, despite a slower infrastructure credit disbursement.
L&T Finance is the holding firm for a range of subsidiaries engaged in lending and asset management business, such as L&T Infra, L&T Finance, L&T FinCorp and L&T Mutual Fund.
On a consolidated basis, the holding firm’s loan book grew 37 per cent year-on-year (y-o-y) to Rs 26,184 crore, but only two per cent from the previous quarter due to weak demand for loans, the company said.
L&T Infra’s credit disbursement were 44.3 per cent lower than the comparing quarter last year. “Lower disbursements in L&T Infra are a reflection of the current environment in the infrastructure sector and our cautious approach to credit selection,” the company said.
L&T Finance (including L&T FinCorp)’s disbursements grew 8.5 per cent year-on-year to Rs 3,427 crore, on the back of a 55 per cent increase in disbursement of rural product finance to Rs 695 crore.
L&T Finance Holdings’ non-performing assets (excluding microfinance business) increased marginally by 1.4 per cent, an increase of four basis points y-o-y and sequentially.
The company also made provisions worth Rs 37.4 crore, including Rs 14.4 crore against microfinance lending in Andhra Pradesh. Andhra Pradesh was the biggest market for micro-lenders before the state government enacted a legislation to regulate the sector.
L&T Finance Holdings has applied to the Reserve Bank of India for systemically important core investment company status, the firm said. The banking regulator had asked firms that has assets of Rs 100 crore to obtain certificates of registration from it.