Total income soared 80% to Rs 5,671.60 crore in quarter ended 31 December 2022 from Rs 3,150.50 crore recorded in Q3 FY22.

Retail PAT was at Rs 394 crore, up 76% YoY, supported by strong retail return on assets (RoA), reaching 2.6% in Q3 FY23.

The firm's net interest margin (NIM) increased to 7.41% for the quarter as against 6.31% reported in the corresponding quarter previous year.

NIM plus Fees & other income improved to 8.80% in Q3 FY23, up 70 basis points (bps) as against 8.10% in Q3 FY22. The increase in NIM+Fee was mainly due to changing portfolio mix towards retail. Retail NIM+Fees reached 11.38% in Q3 FY23, up 25 bps YoY.

Retail portfolio mix was at 64% in Q3 FY23 as compared to 50% in Q3 FY22 and 58% in the quarter ended 30 September 2022. Retail book stood at Rs 57,000 crore, up 34% YoY; led by key products - rural business finance, farm equipment finance and two-wheeler finance.

The company said it recorded the highest-ever quarterly retail disbursements at Rs 11,607 crore in Q3 FY23, registering a growth of 53% YoY and 13% QoQ.

Wholesale portfolio moderated to Rs 31,010 crore in Q3 FY23, recording a decline of 24% YoY.

Gross stage-3 assets amounted to Rs 3,723 crore in Q3 FY23 as against Rs 5,623 crore in Q3 FY22.

Consolidated GS3 was at 4.21% in Q3 FY23, down by 248 bps from 6.69% in Q3 FY22. Net Stage 3 (NS3) stood at 1.72% in Q3 FY23, down by 145 bps as compared to 3.17% posted in the same period a year ago.

Improved retail asset quality with GS3 stood at 3.47% (down 38 bps YoY) and NS3 was at 0.73% (down 45 bps YoY) in Q3 FY23.

Capital adequacy ratio stood at 23.49% (Tier 1 at 20.61% and Tier 2 at 2.88%); adequate liquidity buffers in place.

Dinanath Dubhashi, managing director & CEO, L&T Finance Holdings, said, “We are progressing well on our journey towards Lakshya 2026 to become a top class, ‘digitally-enabled', ‘customer-focused', retail finance company. Our results in Q3FY23 not only highlight our robust business strengths, but also reflect our continued focus on accelerated retailisation, with the retail portfolio mix reaching 64%.”

He further added, “On the strategic initiatives front, we have recently concluded the sale of our mutual fund business and are progressing well on our retailisation journey consisting of two major pillars, namely ‘Strong Retail Growth' and ‘Accelerated sell-down of Wholesale portfolio'. We have also created adequate provisions to support the accelerated sell-down process. With a view to further strengthen the Fintech franchise, the company continued to emphasize on digitisation, data analytics and customer-facing applications, with a clear focus on expanding the existing channels and ecosystems, and creating newer channels. Our application PLANET has recently crossed 17 lakh downloads. All these developments show that we are moving in the right direction to achieve our Lakshya 2026 goals and sustainably create value for all our stakeholders.”

L&T Finance Holdings stated that the board has also approved the amalgamation of L&T Finance (LTF), L&T Infra Credit (LTICL) and L&T Mutual Fund Trustee (LTMFTL), with the company, by way of merger, subject to the sanction of the National Company Law Tribunal (NCLT) and other regulatory approvals, if required.

Meanwhile, the company's board based on the basis of the recommendation of the group risk management committee, has approved the appointment of Vinay Chhawchharia as the chief risk officer of the company for a period of two years with effect from 13 January 2023.

L&T Finance Holdings is a non-banking financial company (NBFC) that offers a range of financial products and services through its wholly owned subsidiaries.

Shares of L&T Finance Holdings rose 1.65% to close at Rs 92.45 on Friday, 13 January 2023.