L&T Finance Holdings consolidated net up 10% in Q4 to Rs 206 cr

Net Interest Margins for lending business has been robust at Rs 2,471 cr

L&T Finance Holdings posted a 10 per cent growth year-on-year in consolidated net profit to Rs 206 crore for the financial year’s fourth quarter ended March. The operating performance was strong, on the back of healthy margins, increased fee income, stable operating expenditure and improvement in asset quality.

For the financial year, the consolidated net profit rose 23 per cent year-on-year to Rs 736 crore. The consolidated profit does not include the Rs 119 crore net of tax which the company made through share sale of City Union Bank.

Net interest margins for the lending business has been robust at Rs 2,471 crore for the year as compared with Rs 1,965 crore a year earlier.

“This growth needs to be understood in the context of accelerated provisions we have made in the last quarter, almost to the tune of Rs 96 crore,” said Y M Deosthalee, chairman and managing director.

Gross and net non-performing assets (NPA) showed a significant improvement. The gross NPA ratio and net NPA ratio declined by 93 and 103 basis points respectively.