L&T Finance Retail Disbursements grew by 33% on a Y-o-Y basis

L&T Finance Holdings reported a 33% year-on-year growth in retail disbursements for Q1FY25, reaching approximately Rs. 14,830 crores, driven by robust performance across its segments. 

by Damodharan N

Updated Jul 08, 2024

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L&T Finance Retail Disbursements grew by 33% on a Y-o-Y basis

L&T Finance Holdings has reported a substantial growth in retail disbursements for Q1FY25, reflecting a robust performance in its lending operations. The estimated disbursement of approximately Rs. 14,830 crores marks a significant 33% increase compared to the same period last year.

This growth is driven by various segments including Rural Business Finance, Farmer Finance, Urban Finance, SME Finance, and the Acquired Portfolio, contributing to a diverse and expanding retail loan portfolio.

The Rural Business Finance segment saw disbursements rise from Rs. 4,511 crores in Q1FY24 to an estimated Rs. 5,770 crores in Q1FY25, indicating strong traction in rural lending initiatives.

Farmer Finance showed steady growth from Rs. 1,757 crores to Rs. 1,900 crores, reflecting continued support for agricultural sectors. Urban Finance experienced substantial growth from Rs. 4,187 crores to Rs. 6,040 crores, highlighting increased urban demand for financial services.

Overall, L&T Finance's retail loan book is projected to reach approximately Rs. 84,440 crores by the end of Q1FY25, showing a robust 31% growth year-on-year. The company is also aggressively pushing towards enhancing its Retailisation strategy, aiming to increase the share of retail loans as a percentage of its total loan portfolio.

As of Q1FY24, the company reported a retailisation rate of 82%, which is expected to significantly rise to approximately 95% by the end of Q1FY25. This expansion underscores the company's strategy to strengthen its retail presence and diversify its loan portfolio across different segments of the economy.

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L&T Finance 

L&T Finance Limited, headquartered in Mumbai, is a prominent Non-Banking Financial Company in India, previously known as L&T Finance Holdings Limited. It operates extensively in the lending sector, offering a wide range of financial products including Personal loans, Two-Wheeler loans, Home loans, Rural Business loans, Farm loans, and SME loans.

The company boasts a robust presence across the country with a significant workforce comprising 29,000 employees and extensive partner touchpoints and field force networks.

L&T Finance is distinguished by its AAA credit rating from CRISIL, ICRA, CARE, and India Ratings, underscoring its strong financial stability and credibility in the market. With a focus on innovation and customer-centric services, L&T Finance aims to cater to diverse financing needs while ensuring personalized and reliable financial solutions for its customers. 

L&T Finance Retail Disbursements grew by 33% on a Y-o-Y basis - FAQs

1. What is the estimated retailisation percentage for Q1FY25?

Retailisation is estimated to be around 95% by the end of Q1FY25.

2. How much did retail disbursements grow year-on-year in Q1FY25?

Retail disbursements grew by approximately 33% year-on-year in Q1FY25.

3. What were the actual retail disbursements for Q1FY24?

Retail disbursements in Q1FY24 were Rs. 11,192 crores

4. What is the estimated total retail loan book at the end of Q1FY25?

The estimated retail loan book at the end of Q1FY25 is approximately Rs. 84,440 crores.

5. How much has the retail loan book grown year-on-year in Q1FY25?

The retail loan book has grown by about 31% year-on-year in Q1FY25.

6. Which segment saw the highest growth in retail disbursements from Q1FY24 to Q1FY25?

Urban Finance witnessed the highest growth in disbursements, increasing from Rs. 4,187 crores in Q1FY24 to Rs. 6,040 crores in Q1FY25

7. What is the growth percentage of Farmer Finance disbursements year-on-year in Q1FY25?

Farmer Finance disbursements grew by approximately 8.2% year-on-year in Q1FY25.

8. How much did SME Finance disbursements increase quarter-on-quarter from Q1FY24 to Q1FY25?

SME Finance disbursements increased from Rs. 607 crores in Q1FY24 to Rs. 980 crores in Q1FY25, marking a quarter-on-quarter growth.

9. What is the total estimated increase in retail disbursements from Q1FY24 to Q1FY25?

The total estimated increase in retail disbursements from Q1FY24 to Q1FY25 is approximately Rs. 3,638 crores.

10. What does the term "acquired portfolio" refer to in the context of retail disbursements?

The term "acquired portfolio" refers to existing loan portfolios that were acquired as part of strategic acquisitions or mergers, contributing Rs. 140 crores to the total retail disbursements in Q1FY25.

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