L&T Finance Holdings net profit up by 16%

Its loan book grew 27% y-o-y to Rs 27,662 crore but grew just by 6% sequentially

L&T Finance Holdings – a non banking financial company (NBFC) from the group of engineering conglomerate L&T reported a 16% rise in net profit at Rs 144 crore.

Its loan book grew 27% year on year (y-o-y) to Rs 27,662 crore but grew just by 6% sequentially.

Non performing assets (NPAs) declined y-o-y by 25 basis points to 1.81%. But the provisions rose to Rs 72 crore from Rs 50 crore y-o-y.

This includes provisions made against Andhra Pradesh portfolio of the microfinance arm which was at Rs 29 crore which increased from Rs 25 crore last year. Andhra Pradesh had been biggest market for the micro lenders before the state government enacted legislation which saw repayments stopping from the borrowers.

 

Gross NPA (excluding Micro-finance business) was at 1.56%. It was 1.10% same period last year. The company attributed increase in NPAs was to stress in the economic environment.