L&T Finance Q2 net profit jumps 66 pc to Rs 560 cr

New Delhi: L&T Finance Holdings (LTFH) Ltd Wednesday reported a rise of 66 per cent in net profit at Rs 560 crore for the second quarter ended September 2018. The company had posted a net profit of Rs 338 crore in the corresponding July-September period of 2017-18.

"Having achieved a RoE of 18.45 per cent in Q1FY19, LTFH has maintained its profitability with 18.47 per cent RoE in Q2FY19. This has been achieved on the back of strong NIMs plus fee income, strict control on cost and improved asset quality," the company said in a release.

Total income in the quarter under review rose to Rs 3,326.04 crore in 2018-19, up from Rs 2,609.65 crore a year ago. The company said it is comfortably placed with respect to both liquidity and interest rate risks due to its robust asset-liability management (ALM), strong risk management framework and proactive actions.

"Enabled by the strength of our business model and a robust risk management framework, we have successfully overcome multiple headwinds during the past two years.  "Our prudent asset liability management has ensured that our average borrowing cost is well in control despite hardening of interest rates," said Dinanath Dubhashi, Managing Director and CEO, LTFH.

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He said the company over the last two years has successfully steered its portfolio towards retailisation, with a rapid increase in rural and housing loan book. 

The company offers financial products and services across rural, housing and wholesale finance sectors, as well as mutual fund products and wealth management services, through its wholly-owned subsidiaries.  Stock of the company closed 3.60 per cent up at Rs 126.60 on BSE.