L&T Finance Holdings on Thursday reported an 81 per cent jump in net income at Rs 406 crore for the September quarter, helped by better asset quality and record high retail advances.
The leading non-banking credit company said it logged the highest-ever quarterly retail disbursements in the September quarter, and the retail book has crossed the Rs 50,000-crore mark.
In the quarter under review, the incremental retail loans rose by Rs 10,238 crore, up 84 per cent. As a result, the retail portfolio mix is at 58 per cent now, up from 47 per cent in Q2FY22, taking the overall retail book to Rs 52,040 crore.
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The numbers were also boosted by best collections across businesses, and the total collections across retail businesses stood at Rs 7,587 crore in Q2, a growth of 17 percent, the company said.
Consumer loan disbursements rose 32 per cent to Rs 1,328 crore while SME loan disbursements crossed Rs 200 crore.
The key profitability gauge -- net interest margin -- rose 85 basis points to 8.43 per cent.
The company has made an additional provision of Rs 1,096 crore or 1.28 per cent of standard assets over and above standard provisions, it said.
Dinanath Dubhashi, Managing Director of L&T Finance, said the September quarter numbers show the accelerated retailisation of its business as a result of which retail disbursements are at an all-time high, even surpassing the highest ever retail disbursements registered in the last quarter.
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Rural business, including micro loans, continued the strong momentum in disbursements and recorded the highest ever quarterly disbursements of Rs 4,418 crore during the quarter, with the book growing 40 per cent, he said.
Farmer finance grew steadily with disbursements of Rs 1,304 crore, which is up 14 per cent while urban finance which forms its consumer loans business continued to grow and achieved a monthly run-rate of over Rs 400 crore.
Two-wheeler finance saw the highest-ever quarterly disbursements at Rs 1,721 crore, a growth of 38 per cent and retail home loans & loan against property segment grew 19 per cent to Rs 1,118 crore.
