L&T Finance gets board approval to raise up to ₹1.01 Lakh Crore via NCDs

19 Mar 2024 , 10:38 AM

On Monday, the board of L&T Finance Holdings approved financing up to ₹1.01 Lakh Crore through the issue of non-convertible debentures in one or more tranches.

The company stated in a filing that the Board has authorized the raising of funds through the issuance of non-convertible debentures, including subordinated debt, masala bonds, and perpetual debt, periodically and in multiple installments. The total value of NCDs issued and outstanding at any given time will not exceed ₹1,01,000 Crore.

L&T Finance is a renowned NBFC, delivering a range of financial products and services under the L&T Finance name. The business, headquartered in Mumbai, has received the highest credit rating for NBFCs, ‘AAA’, from four main rating agencies.

As part of its Lakshya 2026 strategy, the firm is working to build a world-class, digitally enabled retail financing organisation. The objective is to shift the emphasis from product to customer focus and build a strong retail portfolio with high-quality assets, resulting in a fintech at scale.

Fintech at scale is a pillar of the company’s strategy roadmap, Lakshya 2026. The firm has a client database of over 2.2 crore, which it uses to cross-sell, upsell, and identify new consumers.

Over the years, the L&T Group has steadily reduced its reliance on wholesale lending by aggressively increasing its well-diversified retail finance business, which has expanded at a CAGR of 24% during FY18-23.

It has established itself as a robust and well-funded financial organisation. It is a significant player in farm equipment financing, two-wheeler financing, and microloans.

L&T Finance reported a 41% increase in net profit in the third quarter, driven by robust retail loan growth and high fee revenue, despite steady asset quality. During the quarter, net profit reached ₹640 Crore, up from ₹454 Crore the previous year.

For feedback and suggestions, write to us at [e-mail]