L&T finance Q3 profit rises 28% to Rs 271 crore

L&T Finance Holdings, financial services arm of engineering firm L&T, on Tuesday, posted a 28 per cent rise in consolidated net profit at Rs 271 crore during the third quarter ended December 31, 2016.

The company's consolidated net profit was at Rs 212 crore in the year-ago period.

"This is on the back of profitable asset growth and strong traction in fee income across all the businesses. This growth was achieved despite substantial amount of Rs 214 crore voluntary credit cost taken in order to further strengthen the balance sheet," L&T Finance Holdings said in a statement.

Total income of the company also increased to Rs 2,094 crore during the quarter under review as against Rs 1,820 crore a year ago.

"Demonetisation impacted the collections in this quarter, especially in microfinance and farm businesses. While situation is normalising, reported gross NPA has reduced considering the dispensation given by RBI," it said.

Gross NPA declined to 4.85 per cent of total credit as against 4.97 per cent at the end of third quarter of the previous financial year.

Loans and advances grew by 10 per cent to Rs 61,970 crore as compared to Rs 56,119 crore at the end of December 2015.