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L&T Finance's strategic moves paying off
Business Standard
|September 05, 2025
L&T Finance (LTF) continues to pursue a strategy of balancing growth with maintaining asset quality while utilizing its proprietary platform, Project Cyclops, to maintain credit discipline.
Since March 2025, the L&T Finance stock has delivered 60 per cent returns.
The non-banking financial company (NBFC), LTF is focused on acquiring high-quality customers and maintaining collection efficiency. It is leveraging technology through Project Cyclops, an AI-powered underwriting engine.
All 2-wheeler disbursements are processed through Cyclops, and asset quality has seen improvement, with net defaults dropping to 0.34 per cent in Jun'25 from 2.36 per cent in Dec'24.
The company is rolling out Cyclops to Farm Equipment and SME Finance segments, with full deployment targeted by end of Q2'FY26.
LTF has also completed integration of Paul Merchants Finance's gold loan business within two months after acquisition, adding 130 branches, and 700-plus employees to build a gold loan book of ₹1,300 crore. This will strengthen the retail franchise and offer cross-selling potential across the 26 million customer base.
The L&T group-owned finance provider targets scaling up to 300+ gold loan branches by end-FY26.
Given investment grade ratings of 'BBB-/Positive' by S&P Global Ratings and 'BBB-/Stable' by Fitch Ratings, LTF has access to capital at competitive costs.
This story is from the September 05, 2025 edition of Business Standard.
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