L&T Finance Holdings Ltd posted its highest ever quarterly retail disbursements in Q1 FY23 -giving loans worth ₹8,938 crore, which helped it post a profit after tax of ₹262 crore, up 47 per cent on year.
“(The results) reflect our continuing focus on our stated strategy of accelerated retailisation. Retail disbursements are at an all-time high and our retail portfolio mix has reached 54 per cent,” MD and CEO Dinanath Dubhashi was quoted as saying in a release.
Retail loans grew 19 per cent on year at ₹47,794 crore as of June 30. Within the retail book, rural business finance was up 27 per cent and farmer finance was up 13 per cent. On the other hand, the wholesale loan book contracted by 13 per cent to ₹39,795 crore, in-line with the company’s guidance of increasing the share of retail loans in its portfolio to 80 per cent by 2026.
As a result, the overall loan book contracted to ₹88,078 crore, less than 1 per cent from both a quarter and year ago. The net interest margin deteriorated slightly to 6.54 per cent from 6.58 per cent a quarter ago but was better than 6.31 per cent a year ago.
L&T Finance said its continues to carry additional provisions of ₹1,450 crore, corresponding to 1.73 per cent of the standard book, which it believes “will be sufficient to counter any future stresses”pertaining to COVID-related one-time restructuring of stressed loans. Overall capital adequacy ratio was at 23.12 per cent as of Jun 30, of which tier-I capital was at 19.98 per cent.
Gross stage 3 assets ratio of the company stood at 4.08 per cent as of June 30, flat against a quarter ago but better than 6.67 per cent a year ago. The net stage 3 assets ratio at 1.87 per cent too was better than 1.98 per cent in the previous quarter and 2.26 per cent in the previous year.