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| L&T Finance aims to double asset size to Rs 9,500 cr |
| Press Trust of India / Chandigarh Aug 26, 2009, 16:45 IST |
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L&T Finance, the financial services arm of engineering major Larsen & Toubro, aims to double its total asset size to Rs 9,500 crore in the next three years on the back of its growing focus on financing construction, commercial vehicle and farming segments.
"We are looking at growing our asset size, including lending, to the tune of Rs 9,500 crore in the next three years from the present size of Rs 5,450 crore," company's Assistant Vice President G K Shettigar told reporters here today.
The financial services company would derive business growth by tapping several verticals, including construction equipment, commercial vehicle, transportation equipment, rural and distribution for financing.
However, the company's main focus would be on micro financing sector in which it forayed last year. "We are betting big on micro finance segment as over 52 per cent of country's population still live in rural areas and we want to cater to this segment on a larger scale," he said.
Not seeing any impact of deficient rains on credit offtake in the rural sector, Shettigar said that the company had already lent Rs 277 crore in last 18 months because of 100 per cent collections efficiency across its 2.5 lakh customers base.
The company also plans to expand its network across the country by opening more offices. "We have 78 offices and we want our offices' strength to 110 in a span of two years which will help us in penetrating our market," he said.
With steady growth in income from operations, the company is eyeing its profit after tax (PAT) to grow to Rs 120 crore by this fiscal end from Rs 99 crore in the last fiscal. The company is targeting its total income to grow to Rs 1,000 crore by March 2010 against Rs 830 crore in 2008-09.
L&T Finance is looking at raising Rs 1,000 crore from its public offer of non-convertible debentures (NCD) which was launched on August 18.
The money raised would be utilised for lending, repaying loans and for meeting capital expenditure requirements.
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