L&T Finance Q3 Net Profit Up By 39% To <span Class='webrupee'>₹</span>454 Cr

The city-based non-banking lender said the highest-ever quarterly retail loan sales had its retail portfolio mix rising to 64 per cent of the total loan book, up from 58 per cent in the year-ago quarter, Dinanath Dubhashi, the managing director & chief executive of the company, said in a statement.

L&T Finance Holdings the total net profit, as much as ₹394 crore came in from the retail book, which rose a full 76 per cent, on a loan book of ₹57,000 crore -- a growth of 34 per cent led by rural business, farm equipment finance and two-wheeler finance. During the quarter, retail disbursements rose 13 per cent to ₹11,607 crore.

Its wholesale book declined 24 per cent to ₹31,010 crore from ₹37,597 crore.

The key profitability gauge net interest margin and fee income rose 70 bps to 8.80 per cent due to changing portfolio mix towards retail. Retail NIM and fees reached 11.38 per cent, up 25 bps.

Gross bad loans stood at 4.21 per cent or ₹3,723 crore, down 248 bps from 6.69 per cent or ₹5,623 crore, bringing down net NPAs to 1.72 per cent or ₹1,487 crore, down by 145 bps from 3.17 per cent or ₹2,565 crore as of December 2021.

Commenting on the results, Dubhashi said the company is progressing well on its journey towards mission 2026 to become a digitally-enabled retail finance company.