L&T Finance eyes higher exposure in B2C segments
Author(s): City Air NewsMr.Dinanath Dubhashi, Managing Director and Chief Executive of L&T Finance Ltd. Chandigarh, September 29, 2015: L&T Finance Ltd, a wholly-owned subsidiary of L&T Finance Holdings, is pursuing an ambitious growth...
cityairnews
Sep 29, 2015 12:30
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Mr.Dinanath Dubhashi, Managing Director and Chief Executive of L&T Finance Ltd.
Chandigarh, September 29, 2015: L&T Finance Ltd, a wholly-owned subsidiary of L&T Finance Holdings, is pursuing an ambitious growth plan in retail lending, which accounts for 59% of the company’s total loan book, (as of March 2015) by increasing its exposure to B2C segments.
Discussing the company’s focus areas, Mr.Dinanath Dubhashi, Managing Director and Chief Executive of L&T Finance Ltd.said, “We see strong growth in our six core businesses which includes loans for housing, microfinance, small and medium enterprises (SMEs), two-wheelers, tractors and corporate finance and have taken a decision to continue focus on these areas.”
As reiterated by Mr. Dubhashi, L&T Finance has grown in each of these areas. For instance, in housing finance, the company’s loan book has shown a 20 fold increase surpassing Rs 4,000 crores from about Rs 180 crores in 2012 when Indo Pacific Housing Finance was acquired. “In housing, the focus is on having the right product mix of home loans, loans against property and construction financing, besides having the right combination of salaried and self-employed customers. We are also looking to utilize our parent Larsen & Toubro’s (L&T) presence in the construction business to expand in the housing finance space.”
Another area where L&T Finance sees a huge opportunity is in the two-wheeler segment as deteriorating asset quality had prompted many banks to shy away from lending to two-wheeler buyers. “We have a large two-wheeler market. However, only 25-30 per cent of that is financed. There is a great opportunity in the remaining 70 per cent,” Mr. Dubhashi said.
The company’s market share in two-wheeler financing has risen to 6.4 per cent from 4.5 per cent in 2012, when it acquired Family Credit. “We expect a further upside to profitability as we are now investing in technology and cutting down the cost of operations,” he said.
During the Apr-Jun quarter, the total retail book stood at nearly Rs 26,000 crore.
Date:
Tuesday, September 29, 2015
