L&T Finance Holdings is looking to sell its wholesale loan book to interested banks, non-banking finance companies (NBFC) and funds, according to media report.
L&T Finance is aiming to become a 100 percent retail finance company, according to news report Moneycontrol.
The company is also planning to repay or refinance its existing wholesale loan book. The sale of the wholesale loan book is expected to help the company achieve its target of becoming an over 80 percent retail finance firm.
The wholesale book of the company was 25 percent of the total loan book as on 31 March, 2023.
Larsen & Toubro Group’s non-bank financing vertical aims to maintain a compound annual growth rate (CAGR) of over 25 per cent predominantly by focusing on retail financing as a long-term strategy.
For the March quarter, L&T Finance Holdings reported a 47 per cent rise in net profit at ₹501 crore. This is against a net profit of ₹342 crore in the year-ago period.
The year also saw the highest annual retail disbursements of ₹42,065 crore, driven by strong growth across all retail segments, which in turn was an accelerated reduction in wholesale book by 54 per cent to ₹19,840 crore.
“This achievement has been on account of a strong year-on-year (YoY) growth of 35% in retail book with best-in-class asset quality and a decisive 54% reduction in the wholesale book,” company managing director Dinanath Dubhashi was quoted saying in a statement.
The assets under management for the company shrunk to ₹80,893 crore at the end of March from ₹88,341 crore a year back, because of the reduction in wholesale business.
Net income from the retail book came in at ₹1,384 crore, up 87 per cent for the year and ₹472 crore in the reporting quarter, a growth of 20 per cent year-on-year.
On Monday, the company’s scrip ended 0.51 per cent up at ₹118.55 on BSE,