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Business Standard
7 hours ago
- Business
- Business Standard
L & T Finance Ltd. Completes the Acquisition of Paul Merchants Finance's Gold Loan Business
NewsVoir Mumbai (Maharashtra) [India], June 9: L & T Finance Ltd. (LTF), one of the leading Non-Banking Financial Companies (NBFCs) in the country, announced the completion of the transfer of the gold loan business of Paul Merchants Finance Private Ltd. (PMFL), a wholly owned subsidiary of Paul Merchants Ltd., to LTF. The acquisition includes PMFL's 130 branches, approximately 700 employees, and business transfer of its gold loan book size of Rs. 1,350 Crore to LTF. Earlier this calendar year, LTF had announced the proposed acquisition of gold loan business undertaking of PMFL, marking its entry into gold loan business. The gold loan franchise will be an addition to LTF's portfolio of secured loan products. Speaking on this occasion, Sudipta Roy, Managing Director & CEO of LTF said, "We are pleased to announce the completion of PMFL's gold loan business acquisition. In-line with our five-pillar strategy of enhancing customer acquisition, we continuously endeavour to expand our existing product offerings in a synergistic and contiguous manner. LTF has one of the largest rural franchises of approximately 1.6 crore rural customers and hence, this acquisition is a natural contiguous cross-sell product extension of our business. Our rural workforce of 20,000 feet-on-street will provide an immediate force multiplier, enabling active generation of gold loan leads within our existing customer base. This is a significant strength that sets us apart from the competition." "The gold loans business will fill a crucial gap in our portfolio, introducing a secured, high-yield product that will benefit both our rural and urban customers. This acquisition is not just about expanding our offerings; it's about solidifying our position as a comprehensive financial partner for our customers across the country," added Mr. Roy. LTF's entry into the gold loan business aligns seamlessly with the Company's philosophy of risk-calibrated inorganic growth, fulfilling considerations such as addressing a critical capability gap, ensuring an easily integrable business model and people profile, and being available at attractive valuations. Sat Paul Bansal, Chairman and Managing Director of PMFL said, "We are proud to have built a strong, compliant, and customer centric gold loan business undertaking and we believe that LTF is the ideal partner to take this legacy forward. We are confident that the customers and employees transitioning to LTF will continue to thrive under its leadership and expansive ecosystem." L & T Finance Ltd. (LTF) ( formerly known as L & T Finance Holdings Ltd., (LTFH) is a leading Non-Banking Financial Company (NBFC), offering a range of financial products and services. Headquartered in Mumbai, the Company has been rated 'AAA' -- the highest credit rating for NBFCs -- by four leading rating agencies. It has also received leadership scores and ratings by global and national Environmental, Social, and Governance (ESG) rating providers for its sustainability performance. The Company has been certified as a Great Place To Work® and has also won many prestigious awards for its flagship CSR project - "Digital Sakhi"- which focuses on women's empowerment and digital and financial inclusion. Under Right to Win, being in the 'right businesses' has helped the Company become one of the leading financiers in key Retail products. The Company is focused on creating a top-class, digitally enabled, Retail finance company as part of the Lakshya 2026 plan. The goal is to move the emphasis from product focus to customer focus and establish a robust Retail portfolio with quality assets, thus creating a Fintech@Scale while keeping ESG at the core. Fintech@Scale is one of the pillars of the Company's strategic roadmap - Lakshya 2026. The Company has around 2.6 Crore customer database, which is being leveraged to cross-sell, up-sell, and identify new customers.
Fashion Value Chain
10 hours ago
- Business
- Fashion Value Chain
L&T Finance Ltd. Completes the Acquisition of Paul Merchants Finance's Gold Loan Business
L&T Finance Ltd. (LTF), one of the leading Non-Banking Financial Companies (NBFCs) in the country, announced the completion of the transfer of the gold loan business of Paul Merchants Finance Private Ltd. (PMFL), a wholly owned subsidiary of Paul Merchants Ltd., to LTF. The acquisition includes PMFL's 130 branches, approximately 700 employees, and business transfer of its gold loan book size of Rs. 1,350 Crore to LTF. Visit our website avail of the L&T Finance Gold Loan Earlier this calendar year, LTF had announced the proposed acquisition of gold loan business undertaking of PMFL, marking its entry into gold loan business. The gold loan franchise will be an addition to LTF's portfolio of secured loan products. Speaking on this occasion, Mr. Sudipta Roy, Managing Director & CEO of LTF said, 'We are pleased to announce the completion of PMFL's gold loan business acquisition. In-line with our five-pillar strategy of enhancing customer acquisition, we continuously endeavour to expand our existing product offerings in a synergistic and contiguous manner. LTF has one of the largest rural franchises of approximately 1.6 crore rural customers and hence, this acquisition is a natural contiguous cross-sell product extension of our business. Our rural workforce of 20,000 feet-on-street will provide an immediate force multiplier, enabling active generation of gold loan leads within our existing customer base. This is a significant strength that sets us apart from the competition.' 'The gold loans business will fill a crucial gap in our portfolio, introducing a secured, high-yield product that will benefit both our rural and urban customers. This acquisition is not just about expanding our offerings; its about solidifying our position as a comprehensive financial partner for our customers across the country,' added Mr. Roy. LTFs entry into the gold loan business aligns seamlessly with the Company's philosophy of risk-calibrated inorganic growth, fulfilling considerations such as addressing a critical capability gap, ensuring an easily integrable business model and people profile, and being available at attractive valuations. Mr. Sat Paul Bansal, Chairman and Managing Director of PMFL said, 'We are proud to have built a strong, compliant, and customer centric gold loan business undertaking and we believe that LTF is the ideal partner to take this legacy forward. We are confident that the customers and employees transitioning to LTF will continue to thrive under its leadership and expansive ecosystem.' About L&T Finance Ltd (LTF) L&T Finance Ltd. (LTF) ( formerly known as L&T Finance Holdings Ltd., (LTFH) is a leading Non-Banking Financial Company (NBFC), offering a range of financial products and services. Headquartered in Mumbai, the Company has been rated 'AAA' – the highest credit rating for NBFCs – by four leading rating agencies. It has also received leadership scores and ratings by global and national Environmental, Social, and Governance (ESG) rating providers for its sustainability performance. The Company has been certified as a Great Place To Work and has also won many prestigious awards for its flagship CSR project – 'Digital Sakhi'- which focuses on womens empowerment and digital and financial inclusion. Under Right to Win, being in the 'right businesses' has helped the Company become one of the leading financiers in key Retail products. The Company is focused on creating a top-class, digitally enabled, Retail finance company as part of the Lakshya 2026 plan. The goal is to move the emphasis from product focus to customer focus and establish a robust Retail portfolio with quality assets, thus creating a Fintech@Scale while keeping ESG at the core. Fintech@Scale is one of the pillars of the Company's strategic roadmap – Lakshya 2026. The Company has around 2.6 Crore customer database, which is being leveraged to cross-sell, up-sell, and identify new customers. Facebook: LnTFS Twitter: LnTFinance YouTube: Ltfinance LinkedIn: L&TFinance Instagram: Lntfinance
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Business Standard
28-04-2025
- Business
- Business Standard
L&T Finance to increase commercial paper issuance amid softening rates
With the easing interest rate cycle setting in, L&T Finance Ltd is tweaking its fund-raising strategy by gradually increasing the share of commercial papers (CPs) from seven per cent in March 2025 to up to 12-13 per cent of liabilities in the current financial year. The share of CPs, a short-term money market instrument, for the lending arm of the Larsen and Toubro (L&T) group was seven per cent in the quarter ended December 2024. Sachinn Joshi, chief financial officer (CFO), LT Finance, told Business Standard the Reserve Bank of India (RBI) is creating liquidity in the system and indicated that about Rs 2-2.5 trillion liquidity will be maintained. 'If such conditions remain, then you will see short-term rates actually sliding down. There is an expectation of a further 50 basis points cut in policy repo rates,' he added. L&T Finance Ltd's total liabilities stood at Rs 92,247 crore in March 2025 as against Rs 86,161 crore in December 2024 and Rs 76,541 crore in March 2024. RBI has reduced the policy repo rate by 50 basis points to 6.0 per cent. It also changed the stance of monetary policy from 'neutral' to 'accommodative', signalling intent of better liquidity conditions. Joshi said, for example, the CPs are available at 7-7.5 per cent and three-year bonds are also available at 7.5 per cent. When it is clear that interest rates are going down, the issuer will not take much of long-term funds. They do not want to lock themselves for the long term at higher rates and would opt to take money through short-term instruments, subject to market conditions. Besides the cost of funds, another aspect which has a bearing on the choice of fund-raising instrument is asset-liability management. As the loan book starts growing, there will be a lot of repayment that will come to the company under one year. The inflows will be in various buckets — 30 days, 60 days etc. The company has to also correspondingly ensure there are also outflows as part of asset-liability management. As there are inflows (repayment) under the one-year bucket, the company can take CP money (30 days, 60 days etc) tenure that comes for repayment, the CFO added. Besides commercial papers, the share of bank loans (non-priority sector) in liabilities was 27 per cent and of bank loans (priority sector) was 26 per cent and non-convertible debentures (NCDs) — private placement — was 26 per cent. Its weighted average cost of borrowing grew marginally to 7.84 per cent in March 2025 from 7.83 per cent in December 2024 and 7.82 per cent in March 2024.
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Business Standard
28-04-2025
- Business
- Business Standard
L&T Finance shares plunge 8% post Q4 earnings; results breakdown here
Shares of L&T Finance Ltd. plunged over 8 per cent in Monday's intraday trade, even after it reported a 15 per cent rise in consolidated net profit in the final quarter of the financial year 2024-25. L&T Finance stock fell as much as 8.55 per cent during the day to ₹158.2 per share, the worst intraday session since April 7 this year. The stock pared losses to trade 2.64 per cent lower at ₹168 apiece, compared to a 1.22 per cent advance in Nifty50 as of 12:43 PM. The company's scrip extended its decline to day three on Monday. Before the crash in the stock today, it recovered by about 30 per cent from its lows of ₹139 per share, earlier this month. The stock has risen 22 per cent this year, compared to a 2.8 per cent advance in the benchmark Nifty50. L&T Finance has a total market capitalisation of ₹41,414.81 crore. L&T Finance Q4FY25 results The non-bank lender reported a 15 per cent rise in consolidated net profit to ₹636 crore for the January-March quarter of 2024-25. The company had earned a net profit of ₹554 crore in the corresponding quarter of the previous financial year. During the quarter, the NBFC's total income increased to ₹4,027 crore from ₹3,676 crore a year ago. Interest income grew to ₹3,750 crore during the period under review, from ₹3,323 crore in the corresponding quarter a year ago. Retail disbursements rose to Rs 14,899 crore as compared to Rs 15,044 crore in the last quarter of the previous year. L&T Finance foray into gold loans The lender intends to enter the gold loan segment and has signed a business transfer agreement with Paul Merchants Finance Private Limited for the proposed acquisition of their gold loan business undertaking through a slump sale on a going-concern basis, subject to the fulfilment of customary closing conditions. The company stated that the acquisition aligns with its strategy to expand its secured, high-yielding loan portfolio. It is expected to accelerate the scaling of its gold loan business by approximately 36 months, offering a high-quality, profitable gold loan franchise with an attractive return on assets profile at a favourable valuation.
Business Upturn
25-04-2025
- Business
- Business Upturn
L&T Finance Q4FY25 Results: Revenue up 12% YoY at Rs 3,482 Crore; Profit rises 15% to Rs 636 Crore
L&T Finance Ltd. (LTF), one of India's leading Non-Banking Financial Companies (NBFCs), announced its audited financial results for the fiscal year and fourth quarter ended March 31, 2025, showcasing a stellar performance. The company recorded an all-time-high consolidated Profit After Tax (PAT) of Rs. 2,644 Crore for FY25, marking a 14% year-on-year (YoY) growth. For Q4FY25, PAT stood at Rs. 636 Crore, up 15% YoY. The Board of LTF has recommended a final dividend of Rs. 2.75 per equity share, the highest in the company's history, subject to approval at the upcoming Annual General Meeting (AGM). This reflects LTF's robust financial health and commitment to delivering value to shareholders. Key Financial Highlights for FY25 (Consolidated) Retail Book Growth: The retail book surged to Rs. 95,180 Crore, a 19% YoY increase, with retailisation reaching 97% of the total lending book. Consolidated Book: Total book size grew to Rs. 97,762 Crore, up 14% YoY. Retail Disbursements: Disbursements reached Rs. 60,040 Crore, an 11% YoY rise, driven by strong growth in secured assets like Home Loans & Loan Against Property (LAP) (27% YoY) and Farmer Finance (16% YoY). Profitability: PAT increased by 14% YoY to Rs. 2,644 Crore, with a record-high Return on Assets (RoA) of 2.44% (up 12 bps YoY) and Return on Equity (RoE) of 10.87% (up 52 bps YoY). Asset Quality: Gross Stage 3 (GS3) was stable at 3.29% in Q4FY25, while Net Stage 3 (NS3) remained at 0.97%. Credit cost for FY25 improved to 2.50% from 2.67% in FY24. Cost of Borrowing: Proactive asset-liability management restricted the Weighted Average Cost of Borrowing (WACB) to 7.84% in Q4FY25, with only a 33 bps increase over three years despite rising policy rates. Q4FY25 Performance PAT: Grew to Rs. 636 Crore, up 15% YoY. Disbursements: Retail disbursements stood at Rs. 14,899 Crore, stable compared to the previous year, with Farmer Finance leading secured assets growth at 15% YoY. Profitability Metrics: RoA improved to 2.22% (up 3 bps YoY), and RoE rose to 10.13% (up 60 bps YoY). Net Interest Margin + Fees: Recorded at 10.15%, resilient despite a volatile credit environment. Strategic Initiatives and Digital Transformation Under its Lakshya 2026 roadmap, LTF is accelerating its journey to become a top-class, digitally enabled, customer-focused retail financier. Key operational highlights include: AI-Driven Underwriting: Full implementation of Project Cyclops 2.0, an AI-ML-based credit underwriting engine, in Two-wheeler Finance, with ongoing rollout in Farm Equipment Finance. Big Tech Partnerships: Collaborations with PhonePe, CRED, and Amazon Pay launched in FY25 are gaining traction, boosting growth in Personal Loans (42% YoY disbursement growth). Digital Delivery: LTF offers 100% paperless loan journeys across multiple products. Its PLANET app 3.0 (Beta) has surpassed 1.72 Crore downloads, facilitating collections of over Rs. 3,800 Crore and sourcing loans worth Rs. 12,700 Crore. Gold Loan Expansion: LTF entered into a Business Transfer Agreement with Paul Merchants Finance Pvt. Ltd. to acquire their gold loan business, aiming to scale its high-yielding secured portfolio by Q2FY26. Segment Performance Rural Business Finance: Book size grew 6% YoY to Rs. 26,320 Crore, with a cautious disbursement strategy leading to a 3% YoY decline in FY25 disbursements. Farmer Finance: Book size up 10% YoY to Rs. 15,219 Crore, with disbursements rising 16% YoY, supported by favorable monsoon conditions. Two-wheeler Finance: Book size increased 10% YoY to Rs. 12,321 Crore, though Q4 disbursements fell 26% YoY due to enhanced risk calibration. Personal Loans: Book size soared 34% YoY to Rs. 8,648 Crore, with disbursements up 42% YoY. Home Loans & LAP: Book size rose 35% YoY to Rs. 24,929 Crore, with disbursements up 27% YoY. SME Finance: Book size grew 67% YoY to Rs. 6,524 Crore, with disbursements up 37% YoY. ESG and CSR Commitment LTF continues to lead in Environmental, Social, and Governance (ESG) initiatives: Rated in the top decile of the S&P Global Corporate Sustainability Assessment for Diversified Financial Services. ESG Risk Rating of 16.1 by Sustainalytics, classified as 'Low Risk', and an MSCI ESG Rating of 'A'. CSR Initiatives: Sensitized over 2.30 lakh rural women on digital and financial literacy through 1,110 Digital Sakhis. Distributed 13,000 relief kits to flood-affected families in Bihar. Leadership Perspective Mr. Sudipta Roy, Managing Director & CEO of LTF, commented, 'Despite significant headwinds, our resilient performance underscores our ability to thrive in challenging environments. The successful implementation of Project Cyclops 2.0 and partnerships with major tech platforms have strengthened our operational capabilities. Looking ahead, our focus on operational excellence, customer centricity, and prudent risk management will drive sustainable growth as we build a digital-native financial services powerhouse.' News desk at
