L&T Finance looks to hike retail share to 80% by FY26
Business Standard|January 27, 2022
L&T Finance Holdings (LTFH) expects to grow the share of retail loans to 80 percent by the end of March 2026 (FY26), from 50 percent now.
ABHIJIT LELE
L&T Finance looks to hike retail share to 80% by FY26

GROWTH ROAD MAP

Targets for FY26

  • Reach 80% retail share in loan book
  • Increase retail loans at 25% CAGR
  • Increase provision cover to 60%
  • Bring down bad loans to below 4%
  • Deliver return on assets higher than 2.5%

L&T Finance Holdings (LTFH) expects to grow the share of retail loans to 80 percent by the end of March 2026 (FY26), from 50 percent now. The financing arm of engineering major Larsen and Toubro (L&T) plans to achieve this by stepping up the growth rate of retail loans from the current compound annual growth rate (CAGR) of 10-15 percent to 25 percent.

To ramp up its capacity to face asset quality pressures, LTFH aims to increase provision coverage ratio to 60 percent by FY26, from 50 percent currently.

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