L&T Finance net rises 20% to Rs 145 cr

Company recorded strong loan growth of 31% at Rs 34,337 cr

L&T Finance Holdings reported a net profit of Rs 145 crore for the quarter ended June, a rise of 20 per cent compared to the corresponding period last year. It recorded strong loan growth of 31 per cent at Rs 34,337 crore. Gross non performing assets (NPAs) rose to 2.54 per cent from 2.03 per cent in the quarter ended March, while net NPAs increased from 1.26 per cent to 1.67 per cent.

“The increase in gross NPAs has been primarily due to corporate loans in the infrastructure and SME (small and medium enterprises) sectors, as a result of stress in the economic environment,” the company said in a statement. Gross NPAs include those of auto loans company FamilyCredit Ltd, which the company had acquired last year.

Assets under management for the company’s mutual fund business stood at Rs 13,871 crore. The company had acquired this business from Fidelity.

The housing finance business, which the company had started by acquiring Indo Pacific Housing Finance, recorded loans of Rs 520 crore.

L&T Finance Holdings continued to record contraction in the construction equipment and commercial vehicle segments. However, rural products financing and infrastructure financing for the transportation sector showed healthy growth, the company said.

“The disbursements reflect the general slowdown in the economy, the absence of a new capex cycle, the stretched working capital cycles of corporates and the vibrant rural economy,” said a company statement. It added with an improvement in the business environment, asset quality was expected to stabilise.

L&T Finance Holdings has applied to the Reserve Bank of India for a banking licence.