Profit before tax (PBT) marginally declined 0.01% to Rs 823.90 crore in Q3 FY25 as compared with Rs 824.04 crore in Q3 FY24.

Net interest income improved 13% year on year (YoY) to Rs 3,610 crore in the quarter ended 31 December 2024. Net interest margin plus fees & other income in Q3 FY25 was 10.33% as against 10.93% in Q3 FY24.

The company’s retail book witnessed a strong growth of 23.36% YoY to Rs 92,224 crore, while disbursements grew by 5% YoY to Rs 15,210 crore.

Rural business finance quarterly disbursements stood at Rs 4,599 crore in Q3 FY25, down 16% as compared with Rs 5,476 crore in Q3 FY24, while book size increased 14% YoY to Rs 26,231 crore in Q3 FY25.

Farmer Finance disbursement jumped 23% YoY to Rs 2,495 crore in Q3 FY25. The book size stood at Rs 15,075 crore, up 9% YoY. “Growth was aided by a better than average monsoon and festive season demand," stated the company.

Two-wheeler finance disbursement declined 5% YoY to Rs 2,414 crore in Q3 FY25 as compared with RS 2,540 crore in Q3 FY24. Book size stood at Rs 12,676 crore in Q3 FY25, up 21% YoY.

Personal loan disbursements surged 94% YoY to Rs 1,642 crore during the quarter. Book size rallied 22% YoY to Rs 7,820 crore in Q3 FY25.

In Q3 FY25, housing loans & loans against property (LAP) disbursement surged 24% to Rs 2,475 crore as compared with Rs 1,998 crore in Q3 FY24. The book size increased 41% YoY to Rs 23,461 crore during the quarter. The company said that growth is on the back of a focus on distribution channels and partnerships. The company maintained a pristine, secured portfolio performance.

SME Finance disbursement jumped 29% to Rs 1,249 crore during the quarter as compared with Rs 965 crore in Q3 FY24. The book size surged 89% to Rs 5,817 crore in Q3 FY25 as compared with Rs 3,078 crore in the same quarter last year.

Sudipta Roy, MD & CEO, LTF, said, “Despite certain macro challenges within the microfinance sector, we have managed the situation effectively. We are hopeful that the environment will be much better over the next couple of quarters. Our investments and efforts towards building a world-class credit underwriting and monitoring infrastructure continued unabated.

Apropos to the same, our next generation three-dimensional credit underwriting engine ‘Project Cyclops’ was extended to 100% of dealerships in two-wheeler finance and was also operationalized for the farm equipment finance business. In our pursuit of innovation within the lending landscape, LTF launched a strategic partnership with Amazon Pay to develop and offer cutting-edge credit solutions through the platform.

We also extended the PhonePe partnership to personal loans, delivering a seamless digital lending experience to our consumers. Additionally, we have launched Knowledgeable AI (KAI), an AI-powered chatbot that revolutionizes the home loan experience. We were also delighted to host RAISE’ 24, India’s premier AI-themed event in the Banking, Financial Services, and Insurance (BFSI) sector focused on Al's real-world applications. As we look ahead, we remain dedicated to driving innovation and enhancing our offerings to better serve our customers.”

Meanwhile, the company's board informs that Amresh Kumar will cease to be the chief risk officer of the company with effect from 21 January 2025.

Further, Zeenat Hamirani has been appointed as the chief risk officer of the company for a period of three years, effective from 21 January 2025.

L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate, and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities.

Shares of L&T Finance rose 0.76% to currently trade at Rs 145.70 on the BSE.