L&T Finance Achieves NBFC-ICC Status from RBI

L&T Finance Ltd. has transitioned from an NBFC-Core Investment Company (NBFC-CIC) to a Non-Banking Financial Company (Investment and Credit Company) (NBFC-ICC) following the merger of its wholly-owned subsidiaries, including L&T Finance, L&T Infra Credit Ltd., and L&T Mutual Fund Trustee Ltd. The Reserve Bank of India (RBI) issued the certificate of registration on August 2. This change in registration is not expected to affect the company’s compliance with the NBFC-ICC guidelines.

Financial Performance

Net Profit: For Q1FY25, L&T Finance Ltd. reported a record net profit of ₹685 crore, a significant 29% increase year-on-year.

Loan Book Growth: The company’s consolidated loan book grew by 13% year-on-year, reaching ₹88,717 crore as of June 30. Retail loans constitute 95% of this total, amounting to ₹84,444 crore.

Market Performance

Stock Movement: Despite a 0.77% decline in its stock price to ₹167.23 per share, the company’s stock has risen 2.31% year-to-date and 29.84% over the past 12 months. This compares to a 0.26% decline in the NSE Nifty 50 index.

Regulatory Updates

Cancellation of Certificates: In light of the merger, L&T Finance and its subsidiaries, including L&T Infra Credit Ltd., surrendered their Certificates of Registration (CoR) to the RBI. The RBI has also canceled the CoRs of five other NBFCs due to cessation of their legal entities.

Piyush Shukla

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