L&T Finance Limited (LTF.NS) Bundle
From its founding in 1994 as part of the L&T Group to serving over 26 million customers across India today, L&T Finance Limited has built a footprint of more than 1,600 branches with a sharp focus on rural outreach and financial inclusion; guided by a mission to deliver inclusive financial solutions with transparency, speed and trust, and a vision to be an admired, sustainable creator of value for all shareholders, the company-recognized as a 'Great Place To Work' in July 2024-combines rural lending, housing and infrastructure finance with digital transformation and disciplined core values of Pride, Integrity, Discipline and Ambition, a blend that challenges conventional NBFC playbooks and invites a closer look at how these pillars translate into real-world impact and growth.
L&T Finance Limited (LTF.NS) - Intro
L&T Finance Limited (LTF.NS) is a leading Indian Non-Banking Financial Company (NBFC) established in 1994 as part of the L&T Group. Over three decades, the company has expanded its reach across urban and rural India, emphasising inclusive finance, product diversification and digital transformation to serve a broad customer base.- Established: 1994 (part of Larsen & Toubro Group)
- Customer base: Over 26 million customers
- Branch network: More than 1,600 branches nationwide
- Primary focus: Rural outreach and financial inclusion
- Recognition: 'Great Place To Work' - July 2024
| Metric | Figure / Note |
|---|---|
| Year of incorporation | 1994 |
| Customer count | 26+ million |
| Branches | 1,600+ |
| Key product lines | Rural lending, housing finance, infrastructure financing, MSME & corporate lending, construction equipment finance |
| Workplace recognition | Great Place To Work (July 2024) |
| Strategic pillars | Inclusive finance, digital transformation, risk management, geographic diversification |
- Mission - To enable access to finance that empowers individuals, enterprises and infrastructure development across India, with a strong commitment to responsible lending and customer-centricity.
- Vision - To be the preferred and most trusted NBFC partner for inclusive growth, delivering sustainable value to customers, shareholders and communities through innovation, digital capabilities and operational excellence.
- Core Values:
- Customer First - Designing products and experiences for diverse customer segments, especially underserved rural communities.
- Integrity & Governance - Strong emphasis on credit discipline, compliance and transparent governance practices.
- Inclusivity - Focus on rural penetration and financial inclusion to broaden access to credit and services.
- Innovation & Digitalisation - Investing in digital platforms to improve reach, efficiency and customer experience.
- People & Culture - Employee development and workplace culture, reflected in recognitions like Great Place To Work.
- Rural lending focus: Targeted products and distribution to serve agriculture-linked and micro-enterprise customers across rural India.
- Housing finance: Products for affordable and mid-income housing, aiding home ownership and construction-sector linkages.
- Infrastructure financing: Financing of projects and equipment that support long-term economic growth.
- Digital initiatives: Investments in mobile origination, remote KYC, analytics-driven underwriting and branch digitisation to reduce turnaround times and scale outreach.
- Credit discipline: Portfolio segmentation and continuous monitoring to manage asset quality across retail, SME and corporate books.
- Capital & liquidity management: Maintaining access to diversified funding sources (bank lines, bond markets, institutional investors) to support lending growth.
- ESG alignment: Integrating environmental and social considerations into lending decisions, especially for infrastructure and rural portfolios.
L&T Finance Limited (LTF.NS) - Overview
Mission Statement- L&T Finance Limited's mission is to deliver inclusive financial solutions that empower individuals and communities with transparency, speed, and trust.
- The mission prioritizes accessibility for underserved segments to promote financial inclusion and economic empowerment.
- Transparency ensures customers are well-informed about product features, fees, and risks, fostering long-term trust.
- Speed reflects streamlined credit appraisal, digital onboarding, and quicker disbursals to meet urgent customer needs.
- Trust underscores ethical conduct, regulatory compliance, and customer grievance redressal as core operating principles.
- This mission has steered strategic initiatives across retail lending, rural finance, affordable housing, and micro-SME segments.
- Vision: To be a leading, trusted, and inclusive diversified financial services provider in India, enabling sustainable growth for stakeholders.
- Strategic focus areas:
- Deepening retail and rural penetration
- Expanding digital and faster customer journeys
- Maintaining asset quality while scaling the loan book
- Strengthening liability franchise via retail deposits and unsecured credit products
- Customer Centricity - product design and service delivery driven by customer needs.
- Integrity - transparent pricing, disclosures, and ethical conduct.
- Speed & Efficiency - digital-first processes to reduce turnaround time.
- Inclusiveness - targeted outreach to low-income and underserved geographies.
- Accountability - data-driven risk management and governance.
| Metric | Value (approx.) | Reference period |
|---|---|---|
| Total Loan Book / AUM | ₹62,000 crore | FY2023-FY2024 range |
| Total Income (Consolidated) | ₹9,000 crore | FY2023 |
| Profit After Tax (PAT) | ₹700 crore | FY2023 |
| Gross NPA (Consolidated) | ~3.5%-4.0% | FY2023 |
| Net NPA (Consolidated) | ~1.0%-1.5% | FY2023 |
| Capital Adequacy (CRAR) | ~18%-20% | FY2023 |
| Retail Deposit Base | ₹8,000-10,000 crore | FY2023 |
| Branches / Business Correspondents | ~800+ physical touchpoints; 3,000+ BC/partner points | Current |
| Employees (approx.) | 6,000-7,500 | Current |
- Retail Financing: Home loans, LAP, MSME loans and gold loans targeted at widening access to credit.
- Rural & Agri Finance: Small-ticket loans and supply-chain finance to boost rural livelihoods.
- Affordable Housing: Dedicated products with simplified documentation and faster disbursal timelines.
- Distribution & Advisory: MSME and corporate financing through branch network and digital platforms.
- Digital Initiatives: Mobile onboarding, e-KYC, instant decisioning engines to accelerate loan turnaround time.
- Proportion of retail & micro loans in total book: ~55%-65%, indicating focus on inclusive segments.
- Average loan disbursal TAT for select retail products: target under 48-72 hours via digital channels.
- Customer grievance ratios and resolution timelines tracked monthly to uphold transparency and trust.
- Board composition includes independent directors and risk/compliance committees to safeguard stakeholder interests.
- Robust credit-monitoring systems and provisions to maintain asset quality while pursuing growth.
- Regular public disclosures and investor engagement aimed at transparency in financial reporting.
L&T Finance Limited (LTF.NS) - Mission Statement
L&T Finance Limited (LTF.NS) commits to delivering sustainable, inclusive financial solutions that create long-term value for shareholders, customers, employees and communities. The mission aligns with the company's broader vision to be 'admired and inspirational' by balancing profitability with social and environmental responsibility, expanding access to credit, and promoting disciplined risk management and corporate governance.- Deliver a diversified suite of financial products across retail, SME, rural and corporate segments.
- Prioritise asset quality and prudent capital management to ensure resilience through cycles.
- Drive innovation and digital adoption to enhance customer experience and operational efficiency.
- Commit to responsible lending and ESG-aligned initiatives that support long-term sustainability.
- Inclusivity: Expand reach into under-banked segments while maintaining risk discipline.
- Leadership by example: Embed best practices in governance, transparency and stakeholder engagement.
- Long-term value creation: Balance near-term returns with investments in capabilities and ESG.
| Metric (approx.) | As of FY 2023-24 | YoY / Comment |
|---|---|---|
| Assets under Management (AUM) | ₹92,000 crore | Reflects diversified book across retail, infra & corporate |
| Total Income | ₹11,500 crore | Interest + other income combined |
| Profit After Tax (PAT) | ₹1,200 crore | Operational recovery and margin improvement |
| Net Worth / Equity | ₹12,500 crore | Capital buffers supporting growth |
| Gross Stage 3 / GNPA | 2.9% | Maintained under industry average for similar NBFCs |
| Net Stage 3 / NNPA | 0.8% | After provisioning |
| Return on Assets (RoA) | ~1.2% | Improving with higher yields and cost control |
| Return on Equity (RoE) | ~9.5% | Depends on leverage and earning seasonality |
| Capital Adequacy / CAR | ~19% | Comfortable buffer vs. regulatory minima |
- Priority growth sectors: affordable housing, MSME finance, commercial vehicle & construction finance.
- Risk & capital actions: maintain prudent leverage, strengthen provisioning and preserve liquidity.
- Stakeholder engagement: transparent reporting, investor outreach and community initiatives.
L&T Finance Limited (LTF.NS): Vision Statement
L&T Finance Limited (LTF.NS) positions its vision around becoming a leading, diversified financial services group delivering sustainable value to customers, employees, shareholders and society by leveraging technology, disciplined risk management and deep customer relationships. The vision is supported by measurable targets in asset growth, profitability, credit quality and digital adoption.- Pride - a culture of excellence reflected in customer-centric product design and execution across retail, SME and corporate lending.
- Integrity - strict governance, transparent disclosures and ethical conduct across all businesses.
- Discipline - risk-aware growth with standardized processes, strong collections and cost control.
- Ambition - aggressive market penetration in priority segments supported by digital distribution and product innovation.
- Portfolio diversification: retail, housing, small business, tractors, construction & infra finance and wholesale lending.
- Digital-first customer acquisition and service to improve turnaround times and lower cost-to-serve.
- Capital adequacy and liquidity planning to support growth while maintaining investor confidence.
| Metric | Reported/Target (Most recent FY) | Notes |
|---|---|---|
| Consolidated Assets Under Management (AUM) | ≈ ₹1,10,000 crore | Includes retail, wholesale and housing portfolios across subsidiaries |
| Net Worth / Shareholders' Equity | ≈ ₹13,500 crore | Provides loss-absorbing capacity and supports lending growth |
| Net Interest Margin (NIM) | ~4.2%-4.8% | Driven by product mix and funding cost management |
| Profit After Tax (PAT) - Consolidated | ≈ ₹900-1,100 crore | Reflects steady operational recovery and lower credit costs |
| Gross Stage 3 / GNPA | ~3.0%-4.0% | Improving trend due to recoveries and write-offs in prior years |
| Net Stage 3 / NNPA | ~1.0%-1.5% | Post provisioning and collateral realizations |
| Capital Adequacy Ratio (CRAR) | ~18%-20% | Comfortable buffer above regulatory minimums |
| Cost-to-Income Ratio | ~45%-55% | Targeted reduction through digital initiatives and process efficiencies |
- Scale profitable retail lending while keeping single-borrower concentration controlled.
- Strengthen collections and resolution frameworks to keep Stage 3 ratios contained.
- Invest in technology for end-to-end digital onboarding, credit scoring and collections automation.
- Maintain strong liquidity through diversified borrowing (bank lines, bonds, CP, ECB where applicable) and capital-raising readiness.
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