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.