L&T Finance Holdings shares up 5% to hit 52-week high The company reported a 39% jump in net income on Friday after rallying 98 points on the BSE in Monday’s trading session. 454 crore for the December 2022 quarter, driven by record retail loan sales. Key profitability gauges net interest margin (NIM) and fee income rose by 70 bps to 8.80%, while retail NIM and fees rose by 25 bps to 11.38%.
The non-banking lender in earnings said retail portfolio mix in the highest ever quarterly retail loan sales has been rising to 64% of the total loan book, up from 58% in the year-ago quarter, said Deenanath Dubhashi, managing director and Chief Executive Officer (MD & CEO). L&T Finance said that the company is making good progress in its journey towards Mission 2026 to become a digitally enabled retail finance company.
Gross bad loans stood at 4.21%, down 248 bps from December 2021’s 6.69%, down 145 bps from 3.17%, bringing down net non-performing assets (NPAs) to 1.72%.
Retail disbursements grew by 13% during the quarter 11,607 crores. Meanwhile, its wholesale book declined 24%. 31,010 crore to 37,597 crores.
L&T Finance Holdings (LTFH) is a leading Non-Banking Financial Company (NBFC) with a portfolio of mutual funds as well as a range of financial products and services in rural, housing and infrastructure finance. The company is promoted by the group Larsen & Toubro Limited (L&T). The stock is up nearly 20% over the one-year period.
In November 2022, L&T Finance Holdings had completed the sale of L&T AMC to HSBC Asset Management. “… in connection with the proposed sale of 100 per cent of the paid-up share capital of L&T Investment Management Limited, the Asset Manager of L&T Mutual Fund, to HSBC Asset Management (India) Private Limited, the Asset Manager of HSBC Mutual Fund, … the said sale The transaction is set to be completed on November 25, 2022,” the company said. L&T Investment Management Ltd (LTIML) is a wholly owned subsidiary of L&T Finance Holdings.
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