More Stories

Informist, Monday, Jul. 21, 2025

 

--L&T Finance: See Q2 as an inflection point for industry's risk outlook 

--CONTEXT: L&T Finance mgmt's comments in post-result concall with analysts 

 

By Sourabh Kumar and Vaishali Tyagi

 

MUMBAI – L&T Finance Ltd. expects its performance to improve in coming quarters as Jul-Sept is seen as the "inflection point" for the risk outlook of the industry, the management of the non-banking finance company Monday said in a post-earnings conference call with analysts. The management of L&T Finance expects the company to perform better in the coming quarters as they see improvement in all lines of their businesses.

 

"I am very very confident that Jul-Sept will be the inflection point in terms of the risk outlook of the industry and we will see better terms and better outcomes in Oct-Dec and Jan-Mar."

 

In February, the RBI had restored the risk weights applicable on banks' exposure to non-bank lenders to the pre-November 2023 levels. On Nov. 16, 2023, the central bank had announced multiple measures to clamp down on robust credit growth in certain segments, including unsecured personal loans. While the reversal of the 25-percentage-point hike in risk weight came into effect Apr. 1, the central bank's move to reduce the risk weight to 100% from 125% for microfinance loans in the nature of consumer credit was effective immediately.

 

L&T Finance reported a 2.3% on-year rise in its net profit to INR 7.01 billion in the June quarter. Sequentially, the rise was 10.2%. The bank's interest income rose 13.4% in the June quarter to INR 39.15 billion, which supported its bottomline. However, the rise in the profit after tax was capped as the company's impairment on financial instruments rose sharply by nearly 40% on year to INR 5.42 billion in the June quarter. 

 

The management said they strengthened their risk management by investing in relevant technology last year. "So now that we are now reasonably confident of the efficacy of the early technology steps (towards strengthening of risks) that we took last year...this year as the conditions improve, I think we will have the confidence enough to be the first of the block in terms of growth," the management said. The non-banking finance company said all the "growth drivers, all the growth thrusters are now being positioned into place" for improvement in growth of the company, the management said. 

 

In the analyst concall following the March quarter earnings, the management of the bank had said that growth in all lines of business would remain its primary agenda in FY26. 

 

The consolidated book of L&T Finance rose 15% on year to INR 1.02 trillion as of Jun. 30, of which retail loans were at INR 998.16 billion, up 18% on year and 5% on quarter. The rural business book was the largest segment for the diversified NBFC, with assets under management of INR 266.16 billion as of Jun. 30, up 3% on year.  End

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.