L&T Finance Holdings (LTFH) reported a 41 per cent year-on-year (y-o-y) increase in consolidated third quarter net profit at ₹640 crore. The bottomline was supported by a moderate increase in net interest income, robust growth in fees and other income and decline in credit cost.

The non-banking finance company, which offers personal loans, two-wheeler loans, home loans, rural business loans, farm loans, and SME loans, had posted a net profit of ₹454 crore in the year ago quarter.

Net interest income (difference between interest earned and interest expended) increased by 8 per cent y-o-y to ₹1,833 crore (₹1,693 crore in the year ago period).

Fee and other income was up 26 per cent y-o-y at ₹399 crore (₹318 crore). Credit cost declined 16 per cent y-o-y to ₹514 crore (₹610 crore).

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In the reporting quarter, the NBFC achieved the highest quarterly retail loans (comprising farmer finance, rural business finance, urban finance, SME finance and acquired portfolio) disbursement of ₹14,531  crore, 25 per cent y-o-y.

Wholesale finance disbursement declined 78 per cent to ₹334 crore.

As part of Lakshya 2026 strategy, the L&T Finance group has decided to reduce its wholesale loan asset portfolio in the near term through accelerated sell down.

Sudipta Roy, who takes over as Managing Director and Chief Executive Officer of LTFH on January 24, 2024 said, “With retailisation at 91 per cent, we have transitioned to a retail NBFC straddling the Rural and Urban ecosystem.”

Dinanath Dubhashi, who resigned as MD & CEO with effect from January 23, 2024 (end of the day), has been redesignated as the Whole-Time Director of the Company with effect from January 24, 2024 until April 30, 2024.

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As at December-end 2023, the NBFC’s loan book declined 8 per cent to ₹81,780 crore (₹88,426 crore).

The company’s retail asset quality improved with GS (gross stage) 3 assets standing at 2.95 per cent against 3.47 per cent a year ago. Net Stage 3 assets stood at 0.64 per cent (0.73 per cent).