L&T Finance Holdings (L&TFH) plans to raise up to Rs 500 crore through long-term infrastructure bonds, said Chairman, Mr Y.M. Deosthalee.
The non-banking finance company expects to raise the targeted amount in two tranches in the January-March 2012 period.
Mr Deosthalee said the company recently raised Rs 500 crore through private placement of a 17-year paper with state-run Life Insurance Corporation.
L&T Finance has reported a consolidated net profit of Rs 220 crore in the first half of the fiscal, a growth of 8.6 per cent compared with Rs 200 crore in the corresponding year-ago period.
In the July-September quarter, the NBFC reported a net profit of Rs 123 crore.
Mr Deosthalee said the comparable numbers for the corresponding period last year were not available as the company was listed on the stock exchanges only in August 2011.
The consolidated results include numbers of three subsidiaries — L&T Infrastructure Finance Co, L&T Finance Ltd, and L&T Investment Management Ltd.
The company said its gross loan book has grown 53.5 per cent to Rs 21,397 crore as of September 30, 2011 from Rs 13,9631 crore in the corresponding period last year.
Total income rose 42.58 per cent to Rs 1,335.53 crore in the first half of the fiscal against Rs 936.68 crore in the year-ago period.
MFI segment
The company said higher provisioning coverage for the microfinance loan book has impacted the overall net profit
L&T Finance has made an additional provision of Rs 25 crore as a prudent measure, in the second quarter of FY12, taking the total provisioning to Rs 84.7 crore.
“We have Rs 193 crore MFI exposure in Andhra Pradesh and more than 40 per cent of AP MFI book has been provided for,” said Mr. Deosthalee
“We have almost stopped disbursement in Andhra Pradesh. We are disbursing very cautiously in other parts of the country,” he added.